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Automobiles and urban density

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  • Koster, Hans
  • Ostermeijer, Francis
  • van Ommeren, Jos
  • Mayland Nielsen, Victor

Abstract

How has the rise of the automobile influenced urban areas over the past century? In this paper we investigate the long-run impact of car ownership on urban population density, based on a sample of 232 city observations in 57 countries. Using the presence of a car manufacturer in 1920 as a source of exogenous variation, our IV estimates indicate that car ownership substantially reduces density. A one standard deviation increase in car ownership rates causes a reduction in population density of around 40%. For employment density we find almost identical results. This result has important implications for vehicle taxation, car ownership growth in developing countries, and new transport technologies such as automated vehicles.

Suggested Citation

  • Koster, Hans & Ostermeijer, Francis & van Ommeren, Jos & Mayland Nielsen, Victor, 2020. "Automobiles and urban density," CEPR Discussion Papers 14717, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:14717
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    More about this item

    Keywords

    Car ownership; Vehicle costs; Urban density;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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