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How much can vehicle travel be reduced in California through land use policies? David R. Heres Postdoctoral Researcher 2010 Behavior, Energy & Climate Change Conference Sacramento, November 17

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Page 1: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

How much can vehicle travel be reduced inCalifornia through land use policies?

David R. Heres

Postdoctoral Researcher

2010 Behavior, Energy & Climate Change ConferenceSacramento, November 17

Page 2: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Transportation GHG mitigation strategies towardsCalifornia’s 2020 target

Regional transportation GHG targets are ranked third among themitigation strategies within the transportation sector.

1. Vehicle GHG standards (18.8%)

2. Low carbon fuel standard (9.5%)

3. Regional transportation GHG targets (2%)

Page 3: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Measures being considered by MPOs to achieve theregional reduction targets

I Extend bicycle networksI Increase high occupancy lanesI Improve the extension and service of transitI Incentivize telecommutingI Promote the use of alternative modes of transportation and

travel reductionI Promote compact development - high density with mix of

land uses

Page 4: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Contrasting types of housing development

Average residential density in the city of San Francisco is almosttwice that from Los Angeles and 6 times that from a typicalCalifornian suburb.

Page 5: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Mean daily VMT per HH for different residential density,business-housing ratio, and transit density classes

15

17

19

21

23

25

27

29

31

33

35

1 2 3 4 5 6 7 8 9 10

MeanHHDailyVMT

Class

Residen2alDensity Mix "TransitDensity"

Page 6: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Previous estimates for VMT reductions responding toincreases in residential density in California

I CEC(2007): 20% to 40% VMT reduction

I Rodier (2008): 4% reduction in VMT in a 10-year horizon.Based on studies assessing the impacts of land-use changesand transit improvements

I Fang (2008): 3% VMT reduction in response to a doubling inresidential density

I Brownstone and Golob (2009): 12% VMT reduction inresponse to a doubling in residential density

Page 7: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Previous estimates for VMT reductions responding toincreases in residential density in California

I CEC(2007): 20% to 40% VMT reductionI Rodier (2008): 4% reduction in VMT in a 10-year horizon.

Based on studies assessing the impacts of land-use changesand transit improvements

I Fang (2008): 3% VMT reduction in response to a doubling inresidential density

I Brownstone and Golob (2009): 12% VMT reduction inresponse to a doubling in residential density

Page 8: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Previous estimates for VMT reductions responding toincreases in residential density in California

I CEC(2007): 20% to 40% VMT reductionI Rodier (2008): 4% reduction in VMT in a 10-year horizon.

Based on studies assessing the impacts of land-use changesand transit improvements

I Fang (2008): 3% VMT reduction in response to a doubling inresidential density

I Brownstone and Golob (2009): 12% VMT reduction inresponse to a doubling in residential density

Page 9: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Previous estimates for VMT reductions responding toincreases in residential density in California

I CEC(2007): 20% to 40% VMT reductionI Rodier (2008): 4% reduction in VMT in a 10-year horizon.

Based on studies assessing the impacts of land-use changesand transit improvements

I Fang (2008): 3% VMT reduction in response to a doubling inresidential density

I Brownstone and Golob (2009): 12% VMT reduction inresponse to a doubling in residential density

Page 10: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Non-linearity

Frequency distribution of HH daily VMT0

001000

1000

1000200020

0020003000

3000

3000400040

004000Frequency

Freq

uenc

yFrequency0

0

0100

100

100200

200

200300

300

300400

400

400500

500

500VMT

VMT

VMT

Page 11: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Residential self-selection

Page 12: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Residential self-selection

Page 13: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Elasticities for different specifications of the Modified TwoPart Model with Instrumental Variables

Dependent variable: Vehicle miles traveled(1) (2) (3) (4) (5) (6) (7)

residential density -0.1898* - -0.1934* -0.1399* - -0.1622* -

business-housing ratio - -0.4442* 0.0524 - -0.2118 0.1486 -

transit density - - - -0.08611 -0.1476* -0.0814 -0.1569*

Are IVs’ relevant? Yes Yes Yes Yes Yes Yes -Are IVs’ valid? Yes No Yes Yes No Yes -

Other control variables: age of older member in the HH, % of HH members that work , HH size, number of vehicles in theHH, indicator variables for income class, urban area, and region.Instrumental variables (IVs): % of housing units built before 1940, % of HHs where head’s race is other than white, % offamily HHs (all measured for the census tract where the HH is located)

Page 14: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Required increases on two alternative policies to achievea reduction of 4% in VMT

Median LO UPResidential density increase 24.6% 20.7% 28.6%Gasoline price increase 20.1% 13.6% 26.7%

Page 15: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Trajectory of the price of gasoline

100

150

200

250

300

350

400

450

500

Jan01

,200

7

Mar01,200

7

May01,200

7

Jul01,200

7

Sep01

,200

7

Nov01,200

7

Jan01

,200

8

Mar01,200

8

May01,200

8

Jul01,200

8

Sep01

,200

8

Nov01,200

8

Jan01

,200

9

Mar01,200

9

May01,200

9

centspe

rgallo

nofgasolineinCalifo

rnia

64%increase

62%decrease

73%increase

Page 16: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Conclusions

I Results from this study imply that, everything else equal,doubling residential density would reduce VMT by roughly20%

I The estimates indicate that the 4% reduction in VMT toachieve the GHG reductions from land-use policies inCalifornia would require increasing residential density byalmost 25%.

I On the other hand, estimates from studies looking at the effectof price variations on travel demand imply that a 20% increaseon top of the price of gasoline would suffice to reduce travelby those same amounts

I A combination of pricing and land use policies may deliver thebest results. However, political opposition and technicalconstraints, among other obstacles, will likely hinder timelyimplementation of either policy

Page 17: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Conclusions

I Results from this study imply that, everything else equal,doubling residential density would reduce VMT by roughly20%

I The estimates indicate that the 4% reduction in VMT toachieve the GHG reductions from land-use policies inCalifornia would require increasing residential density byalmost 25%.

I On the other hand, estimates from studies looking at the effectof price variations on travel demand imply that a 20% increaseon top of the price of gasoline would suffice to reduce travelby those same amounts

I A combination of pricing and land use policies may deliver thebest results. However, political opposition and technicalconstraints, among other obstacles, will likely hinder timelyimplementation of either policy

Page 18: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Conclusions

I Results from this study imply that, everything else equal,doubling residential density would reduce VMT by roughly20%

I The estimates indicate that the 4% reduction in VMT toachieve the GHG reductions from land-use policies inCalifornia would require increasing residential density byalmost 25%.

I On the other hand, estimates from studies looking at the effectof price variations on travel demand imply that a 20% increaseon top of the price of gasoline would suffice to reduce travelby those same amounts

I A combination of pricing and land use policies may deliver thebest results. However, political opposition and technicalconstraints, among other obstacles, will likely hinder timelyimplementation of either policy

Page 19: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Conclusions

I Results from this study imply that, everything else equal,doubling residential density would reduce VMT by roughly20%

I The estimates indicate that the 4% reduction in VMT toachieve the GHG reductions from land-use policies inCalifornia would require increasing residential density byalmost 25%.

I On the other hand, estimates from studies looking at the effectof price variations on travel demand imply that a 20% increaseon top of the price of gasoline would suffice to reduce travelby those same amounts

I A combination of pricing and land use policies may deliver thebest results. However, political opposition and technicalconstraints, among other obstacles, will likely hinder timelyimplementation of either policy

Page 20: How much can vehicle travel be reduced in California through ...HH, indicator variables for income class, urban area, and region. Instrumental variables (IVs): %of housing units built

Thank you

David R. HeresBasque Centre for Climate ChangeBilbao, Bizkaia, [email protected]

Further reading: Heres & Niemeier (2011) in TransportationResearch Part B, 45(1): 150-161