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A review of 116 travel cost models finds that, of the studies that report their practice, about half include depreciation in their calculation of vehicle costs and half do not, with none giving a justification for either approach. We examine empirically whether depreciation is related to households' decisions of how much to drive. Using a sample of over 200,000 US households, we find that, relative to fuel costs, depreciation has a small effect on the amount that households drive. This finding is consistent with households' considering depreciation as primarily a fixed rather than marginal cost.
The Journal of Transport, Economics and Policy (JTEP) was first published 40 years ago and quickly established itself as an essential source of information and debate on the economics of transport and its interface with transport policy. Today it continues to provide a much-needed focus for this specific area of transport research a single, accessible resource of international articles which also reflect the diverse nature of the current field. JTEP meets the challenge of innovation and change, regularly publishing the latest policy developments and their impact across the world.
The University of Bath is one of the UK's leading universities, with an international reputation for research and teaching at the highest academic standard. It has a small, friendly campus near the UNESCO World Heritage City of Bath. The University has a distinctive approach that emphasizes the education of professional practitioners and the promotion of original inquiry, as well as innovation in partnership with business, the professions, public services and the voluntary sector. In the annual university league tables in 2007, the University of Bath was ranked top ten in the UK by Daily Telegraph, The Sunday Times and The Guardian.
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