The effect of prices and income on car
\ntravel in the UK

Abstract

The objective of this paper is to analyse the factors determining household car travel,
\nand specifically the effects of household income and the prices of cars and motor fuels, and
\nto explore the intertemporal pattern of adjustment. The question of asymmetry in the
\nresponse to rising and falling income is also addressed. Such asymmetry may be caused by
\nhabit or resistance to change or the tendency to acquire habits to consume more easily than
\nto abandon them. The impact of prices, the speed of adjustment and the resistance to
\nchange will be important in determining the possibility of influencing travel behaviour and
\nspecifically car use. The study utilises repeated cross-section data from the annual UK
\nFamily Expenditure Surveys and employs a pseudo-panel methodology. The results are
\ncompared with those for car ownership estimated on the basis of similar models.