Effect of Fluctuation of Gasoline Prices on Travel Behavior: An Empirical Analysis using Regional Data in Japan and Its Policy Implications

Abstract

This analyzes the effect of fluctuation of gasoline prices and income on travel behavior with a focus on the usage of public transport and personal automobiles as well as gasoline consumption on cars, railway passengers with or without periodical tickets and ownership of various kinds of automobiles, clarifying the limitation of transport statistics in Japan. The method consists of the panel analysis of regional cross-section time-series data. The implications refer to fuel price policy and extend to estimation of adverse effect of the discounting of expressway tolls as well as the proposed abolition of the provisional gasoline tax rate.