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Abstract

In this paper, we present a model that can be viewed as an extension of the traditional Tobit model. Asopposed to that specific model, ours also accounts for the the fixed costs of car ownership. That extension isneeded since being carless is an option for many households in societies that have a good system of publictransportation, the main reason being that carless households wish to save the fixed costs of car ownership.So far, no existing model can adequately map the impact of these fixed costs on car ownership. The MultipleDiscrete-Continuous Extreme Value Model MDCEV with fixed costs fills this gap. In fact, this model canevaluate the effect of policies intended to influence household behaviour with respect to car ownership,which can be of great interest to policy makers. Our model makes it possible to compute the effect ofpolicies such as taxes on fuel or on car ownership on both the share of carless households and the averagedriving distance.We calibrated the model using data on Swiss private households in order to forecast were then able toforecast responses to policies. One result of particular interest that cannot be produced by other models is theevaluation of the impact of a tax on car ownership. Our results show that a tax on car ownership has a muchlower impact on aggregate driving demand – per unit of tax revenues – than a tax on fuel.



Item Type: MPRA Paper -

Original Title: The Multiple Discrete-Continuous Extreme Value Model MDCEV with fixed costs-

English Title: The Multiple Discrete-Continuous Extreme Value Model MDCEV with fixed costs-

Language: English-

Keywords: The Multiple Discrete-Continuous Extreme Value Model MDCEV; fixed costs; fuel consumption; carbon dioxide; emissions-

Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and EstimationD - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical AnalysisC - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C24 - Truncated and Censored Models ; Switching Regression Models ; Threshold Regression ModelsQ - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q40 - GeneralC - Mathematical and Quantitative Methods > C0 - General > C01 - Econometrics-





Author: Tanner, Reto

Source: https://mpra.ub.uni-muenchen.de/41452/







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