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The impact of urban form on vehicle fuel consumption in Mexican metropolitan areas

David Heres and Rafael Dávila-Bugarín
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Rafael Dávila-Bugarín: Director, Market Conditions, Mexican Federal Institute of Telecommunications (IFT)

EKONOMIAZ. Revista vasca de Economía, 2020, vol. 97, issue 01, 241-263

Abstract: In this study we analyze the impact that two measures of the urban form – residential density and the land use diversity index – have on gasoline consumption in households located in metropolitan areas of Mexico. The econometric specification implemented is a modified two-part model that fits the distribution of gasoline consumption, while mitigating the endogeneity bias resulting from residential self-selection. The results from the instrumental variables specification, suggest that after controlling for household characteristics increasing residential density in the vicinity of the household location could increase gasoline consumption while increasing residential density at the metropolitan scale may reduce gasoline consumption. Interestingly, the land use diversity index does not seem to affect gasoline consumption. Put together, these findings are indicative of the potential risk of not taking advantage of high residential densities to, together with other strategies, reduce gasoline consumption in metropolitan areas in Mexico.

Keywords: compact development; gasoline consumption; land use diversity index; residential density; travel behavior; two-part model (search for similar items in EconPapers)
JEL-codes: C51 D12 Q35 Q5 (search for similar items in EconPapers)
Date: 2020
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