Driving for Fun? - A Comparison of Weekdays and Weekend Travel

26 Pages Posted: 19 Oct 2009

See all articles by Manuel Frondel

Manuel Frondel

RWI Leibniz Institute for Economic Research ; Ruhr University Bochum (RUB)

Colin Vance

Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)

Date Written: April 1, 2009

Abstract

Focusing on individual motorists in car-owning households in Germany, this paper econometrically investigates the determinants of automobile travel with the specific aim of quantifying the effects of fuel prices and person-level attributes on travel conducted over a five-day week and weekend. Our analysis is predicated on the notion that car use is an individual decision, albeit one that is dependent on intra-household allocation processes, thereby building on a growing body of literature that has identified the importance of socioeconomic factors such as employment status, gender, and the presence of children in determining both access to the car and distance driven. To capture this two-stage decision process, we employ the Two-Part Model, which consists of Probit and OLS estimators, and derive elasticity estimates that incorporate both the discrete and continuous choices pertaining to car use. With fuel price elasticity estimates ranging between -0.42 and -0.48, our results suggest raising prices via fuel taxes to be a promising energy conservation and climate protection measure.

Keywords: Automobile travel, Two-Part Model, interaction effects

JEL Classification: D13, Q41

Suggested Citation

Frondel, Manuel and Vance, Colin, Driving for Fun? - A Comparison of Weekdays and Weekend Travel (April 1, 2009). Ruhr Economic Paper No. 103. Available at SSRN: https://ssrn.com/abstract=1430371 or http://dx.doi.org/10.2139/ssrn.1430371

Manuel Frondel (Contact Author)

RWI Leibniz Institute for Economic Research ( email )

Hohenzollernstr. 1-3
45128 Essen
Germany

Ruhr University Bochum (RUB) ( email )

Universitätsstraße 150
Bochum, NRW 44780
Germany

Colin Vance

Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany
0049-201-8149-237 (Phone)

HOME PAGE: http://www.rwi-essen.de

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