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Car ownership in relation to income distribution and consumers' spending decisions

Author

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  • François Lescaroux

    (IFPEN - IFP Energies nouvelles)

Abstract

This paper proposes a formal model of per-capita private car ownership based on very simple and general assumptions on income distribution and consumers' spending decisions. The author justifies a theoretical S-shaped curve describing changes in ownership as a function of average per-capita income, income's dispersion and the "Cost/utility" ratio of owning a car. He applies the model on a panel of 64 countries and explains past variations in their ownership rates. Then, projections are performed to the year 2030. They suggest that the actual trends are not sustainable, which implies a need for important technical and sociological evolutions.

Suggested Citation

  • François Lescaroux, 2007. "Car ownership in relation to income distribution and consumers' spending decisions," Working Papers hal-02469396, HAL.
    • Handle: RePEc:hal:wpaper:hal-02469396
    Note: View the original document on HAL open archive server: https://ifp.hal.science/hal-02469396
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    Cited by:

    1. Anthony Paris, 2016. "The Effect of Biofuels on the Link between Oil and Agricultural Commodity Prices: A Smooth Transition Cointegration Approach," EconomiX Working Papers 2016-5, University of Paris Nanterre, EconomiX.
    2. Dupoux, Marion, 2019. "The land use change time-accounting failure," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    3. Emmanuel Hache, 2018. "Do renewable energies improve energy security in the long run?," International Economics, CEPII research center, issue 156, pages 127-135.
    4. Albert Banal-Estañol & Jeremy Eckhause & Olivier Massol, 2015. "Incentives for early adoption of carbon capture technology: further considerations from a European perspective," Working Papers hal-02475485, HAL.
    5. Vincent Brémond & Emmanuel Hache & Tovonony Razafindrabe, 2015. "On the link between oil price and exchange rate : A time-varying VAR parameter approach," Working Papers hal-03206684, HAL.

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