Rebound Effect or Induced Demand? Analyzing the Compound Dual Effects on VMT in the U.S

Jihye Byun, Sungjin Park and Kitae Jang
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Jihye Byun: The Cho Chun Shik Graduate School of Green Transportation, Korea Advanced Institute of Science and Technology, Daejeon 34141, Korea
Sungjin Park: Department of Urban Design and Planning, Hongik University, Seoul 04066, Korea
Kitae Jang: The Cho Chun Shik Graduate School of Green Transportation, Korea Advanced Institute of Science and Technology, Daejeon 34141, Korea

Sustainability, 2017, vol. 9, issue 2, 1-10

Abstract: This research explored the dual influence of fuel efficiency and roadway capacity on vehicle distance traveled. The empirical study was conducted by applying a generalized least square (GLS) analysis to the U.S. state-level panel data of fuel efficiency, roadway lane-miles, and vehicle miles traveled (VMT) for over three decades (1980–2010). The analysis confirmed the co-existence of rebound effect and induced demand on driving distances over the decades—improved fuel efficiency and expanded roadway capacity caused additional vehicle distance traveled, partially offsetting the benefits of the measures taken. Furthermore, the results showed that the magnitude of each effect would be unjustifiably overestimated if this dual influence was not taken into consideration.

Keywords: rebound effect; induced demand; feedback effect; fuel efficiency; road lane-mile; vehicle mile traveled (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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