Does improving public transport decrease car ownership? Evidence from a residential sorting model for the Copenhagen metropolitan area

Ismir Mulalic; Jan Rouwendal

doi:10.1016/j.regsciurbeco.2020.103543

Does improving public transport decrease car ownership? Evidence from a residential sorting model for the Copenhagen metropolitan area

Ismir Mulalic^*, Jan Rouwendal

^*Corresponding author for this work

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Abstract

Car ownership is lower in urban areas, where public transport is of high quality. This suggests that better public transport offers the possibility to relieve the many problems (congestion, pollution, and parking) associated with the presence of cars in urban areas. To investigate this issue, we develop a model for the simultaneous choice of residential location and car ownership by households, and estimate it on Danish data, paying special attention to accessibility of the metro network. We use the estimated model to simulate the impact of an extension of the metro network. We show that for the Greater Copenhagen Area an extension of the metro network decreases car ownership by 2–3%, while the average compensating variation is approximately 3% of household income.

Original language	English
Article number	103543
Pages (from-to)	1-19
Number of pages	19
Journal	Regional Science and Urban Economics
Volume	83
Early online date	14 Apr 2020
DOIs	https://doi.org/10.1016/j.regsciurbeco.2020.103543
Publication status	Published - Jul 2020

Funding

Earlier versions of the paper have been presented at ITEA conference in Oslo, the workshop on New Developments in Spatial Sorting in Copenhagen, the 62nd Annual North American Meetings of the Regional Science (RSAI) and 10th Meeting of the Urban Economics Association, the 56th ERSA Congress, University of Cergy-Pontoise, University of Copenhagen, University of Edinburgh, SFI - The Danish National Centre for Social Research, University of Valencia, TU Dresden, Copenhagen Business School and at VU Amsterdam. The authors thank Ninette Pilegaard, Thomas Crossley, Gerard de Jong, Dennis Epple, Bo Honoré, Nicolai Kuminoff, Lars Nesheim, Henry Overman, Chris Timmins, two anonymous referees and Gabriel Ahlfeldt (the editor) for useful suggestions on earlier drafts. They are grateful to Statistics Denmark for providing the data. Research support from Kraks Fond– Institute for Urban Economic Research, Copenhagen ( [email protected] ) is gratefully acknowledged. The usual disclaimer applies

Funders	Funder number
Kraks Fond– Institute for Urban Economic Research
University of Cergy-Pontoise
Urban Economics Association
VU AMSTERDAM
Copenhagen Business School
University of Edinburgh
Science Foundation Ireland
Københavns Universitet
Technische Universität Dresden
Universitat de València

Keywords

Car ownership
Cost-benefit analysis
Public transport
Residential sorting

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.regsciurbeco.2020.103543

Does improving public transport decrease car ownership_Evidence from a residential sorting model for the Copenhagen metropolitan areaFinal published version, 4.06 MBLicence: Article 25fa Dutch Copyright Act

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title = "Does improving public transport decrease car ownership? Evidence from a residential sorting model for the Copenhagen metropolitan area",

abstract = "Car ownership is lower in urban areas, where public transport is of high quality. This suggests that better public transport offers the possibility to relieve the many problems (congestion, pollution, and parking) associated with the presence of cars in urban areas. To investigate this issue, we develop a model for the simultaneous choice of residential location and car ownership by households, and estimate it on Danish data, paying special attention to accessibility of the metro network. We use the estimated model to simulate the impact of an extension of the metro network. We show that for the Greater Copenhagen Area an extension of the metro network decreases car ownership by 2–3%, while the average compensating variation is approximately 3% of household income.",

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Does improving public transport decrease car ownership? Evidence from a residential sorting model for the Copenhagen metropolitan area

Abstract

Funding

Keywords

UN SDGs

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