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Does Improving Public Transport Decrease Car Ownership? Evidence from the Copenhagen Metropolitan Area

Tinbergen Institute Discussion Paper 15-139/VIII

55 Pages Posted: 5 Jan 2016  

Ismir Mulalic

Technical University of Denmark

Ninette Pilegaard

Technical University of Denmark

Jan Rouwendal

VU University Amsterdam - Department of Spatial Economics

Date Written: January 4, 2016

Abstract

Car ownership is lower in urban areas, which is probably related to the availability of better public transport. Better public transport thus may offer the possibility to relieve the many problems (congestion, health, and parking) associated with the presence of cars in urban areas. To investigate this issue, we develop and estimate a model for the simultaneous choice of a residential area and car ownership. The model is estimated on Danish register data for single-earner and dual-earners households in the greater Copenhagen metropolitan area. We pay special attention to accessibility of the metro network which offers particularly high quality public transport. Simulations based on the estimated model show that for the greater Copenhagen area a planned extension of the metro network decreases car ownership by 2-3%. Our results suggest also a substantial increase in the interest for living in areas close to the metro network, that affects the demographic composition of neighborhoods.

Keywords: car ownership, public transport, residential sorting

JEL Classification: R4, R1, D1

Suggested Citation

Mulalic, Ismir and Pilegaard, Ninette and Rouwendal, Jan, Does Improving Public Transport Decrease Car Ownership? Evidence from the Copenhagen Metropolitan Area (January 4, 2016). Tinbergen Institute Discussion Paper 15-139/VIII. Available at SSRN: https://ssrn.com/abstract=2710547 or http://dx.doi.org/10.2139/ssrn.2710547

Ismir Mulalic (Contact Author)

Technical University of Denmark ( email )

Anker Engelunds Vej 1
Building 101A
Lyngby, 2800
Denmark

Ninette Pilegaard

Technical University of Denmark ( email )

Anker Engelunds Vej 1
Building 101A
Lyngby, 2800
Denmark

Jan Rouwendal

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands

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