An Econometric Analysis of the Elasticity of Vehicle Travel with Respect to Fuel Cost per Mile Using RTEC Survey Data

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This paper presents the results of econometric estimation of the ''rebound effect'' for household vehicle travel in the United States based on a comprehensive analysis of survey data collected by the U.S. Energy Information Administration (EIA) at approximately three-year intervals over a 15-year period. The rebound effect is defined as the percent change in vehicle travel for a percent change in fuel economy. It summarizes the tendency to ''take back'' potential energy savings due to fuel economy improvements in the form of increased vehicle travel. Separate vehicles use models were estimated for one-, two-, three-, four-, and five-vehicle households. The ... continued below

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Medium: P; Size: 64 pages

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Greene, D.L.; Kahn, J. & Gibson, R. March 1, 1999.

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Description

This paper presents the results of econometric estimation of the ''rebound effect'' for household vehicle travel in the United States based on a comprehensive analysis of survey data collected by the U.S. Energy Information Administration (EIA) at approximately three-year intervals over a 15-year period. The rebound effect is defined as the percent change in vehicle travel for a percent change in fuel economy. It summarizes the tendency to ''take back'' potential energy savings due to fuel economy improvements in the form of increased vehicle travel. Separate vehicles use models were estimated for one-, two-, three-, four-, and five-vehicle households. The results are consistent with the consensus of recently published estimates based on national or state-level data, which show a long-run rebound effect of about +0.2 (a ten percent increase in fuel economy, all else equal, would produce roughly a two percent increase in vehicle travel and an eight percent reduction in fuel use). The hypothesis that vehicle travel responds equally to changes in fuel cost-per-mile whether caused by changes in fuel economy or fuel price per gallon could not be rejected. Recognizing the interdependency in survey data among miles of travel, fuel economy and price paid for fuel for a particular vehicle turns out to be crucial to obtaining meaningful results.

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Medium: P; Size: 64 pages

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OSTI as DE00006659

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  • Other Information: PBD: 1 Mar 1999

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  • Report No.: ORNL-6950
  • Grant Number: AC05-96OR22464
  • DOI: 10.2172/6659 | External Link
  • Office of Scientific & Technical Information Report Number: 6659
  • Archival Resource Key: ark:/67531/metadc710384

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  • March 1, 1999

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  • Sept. 12, 2015, 6:31 a.m.

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  • Jan. 9, 2018, 9:12 a.m.

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Greene, D.L.; Kahn, J. & Gibson, R. An Econometric Analysis of the Elasticity of Vehicle Travel with Respect to Fuel Cost per Mile Using RTEC Survey Data, report, March 1, 1999; Tennessee. (digital.library.unt.edu/ark:/67531/metadc710384/: accessed December 13, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.