Estimates of price elasticity of demand for urban freeway use with high-frequency control variables: the case of Santiago, Chile

Louis de Grange

Felipe González

Rodrigo Troncoso

Journal Article

10.1080/00036846.2015.1005825

0003-6846

Estimates are presented of toll and fuel price elasticities of demand for urban freeway use in Santiago, Chile. High-frequency toll and vehicle data were collected from four urban freeways for different route segments and times of day. Estimation was performed using log-linear regression models whose explanatory variables were tolls, fuel prices, city traffic levels and sets of dichotomous variables to control for daily, weekly and monthly seasonality. City traffic is a high frequency control of the activity level of the city. The elasticities to changes in tolls and fuel were all low in absolute value. The toll elasticities were below 0.05 for two freeways and 0.16 for the third, while for the fourth, which had more alternative routes, it was 0.47. The fuel price elasticities were also heterogeneous, with values of approximately 0.45 for two freeways and 0.21 for the third whereas for the fourth, which had the fewest alternatives, it was 0.07.

2015-12-28 21:45:16

May 9, 2015

22

Taylor and Francis+NEJM

2326-2337

Applied Economics

Estimates of price elasticity of demand for urban freeway use with high-frequency control variables

Estimates of price elasticity of demand for urban freeway use with high-frequency control variables: the case of Santiago, Chile

http://dx.doi.org/10.1080/00036846.2015.1005825

47

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