The impact of residential density on vehicle usage and fuel consumption: Evidence from national samples

• Published in: Energy economics Vol. 40; pp. 196 - 206
• Main Authors: Kim, Jinwon, Brownstone, David
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.11.2013; Elsevier; Elsevier Science Ltd
• Subjects: Applied sciences; Buildings. Public works; Consumer preferences; Consumers; Decision analysis; Energy consumption; Energy economics; Energy efficiency; Exact sciences and technology; Fuel; Fuels; Ground, air and sea transportation, marine construction; Household vehicle choice; Households; Mathematical problems; Neighborhoods; Residential density; Road transportation and traffic; Simultaneous equations systems; Smart growth; Statistical analysis; Studies; Surveys; Travel; Urban development; United States; North America; America; C31; D12; Residential density; Simultaneous equations systems; Household vehicle choice; R41; Data analysis; Road vehicle; Use; Residential neighborhoods; Urban area; Descriptive statistics; Simultaneous equation system; Modal choice; Residential zone; Survey; Behavioral analysis; Motor fuel; Motor fuel consumption; Population density
• ISSN: 0140-9883; 1873-6181
• DOI: 10.1016/j.eneco.2013.06.012

This paper investigates the impact of residential density on household vehicle usage and fuel consumption. We estimate a simultaneous equations system to account for the potential residential self-selection problem. While most previous studies focus on a specific region, this paper uses national samples from the 2001 National Household Travel Survey. The estimation results indicate that residential density has a statistically significant but economically modest influence on vehicle usage, which is similar to that in previous studies. However, the joint effect of the contextual density measure (density in the context of its surrounding area) and residential density on vehicle usage is quantitatively larger than the sole effect of residential density. Moving a household from a suburban to an urban area reduces household annual mileage by 18%. We also find that a lower neighborhood residential density induces consumer choices toward less fuel-efficient vehicles, which confirms the finding in Brownstone and Golob (2009). •Density has a significant but small impact on household vehicle use.•Changing land type has a larger impact on household vehicle use.•Including household characteristics eliminates self-selection bias.