Vehicle Ownership Model That Incorporates the Causal Structure Underlying Attitudes Toward Vehicle Ownership

Abstract

Household vehicle ownership behavior is governed not only by economic considerations but also by psychological and sociological factors. The latter factors are expected to play important roles in early stages of motorization. Previous disaggregate models of household vehicle ownership behavior, however, have been developed mostly for countries with mature motorization and most often have included only economic factors as explanatory variables that determine the utility of a household vehicle. These models are limited as models of vehicle ownership behavior in earlier stages of motorization if psychological and sociological factors are, in fact, significant determinants of household vehicle ownership decisions. The concept of symbolic utility of vehicle ownership, which refers to psychological satisfaction from owning and using a vehicle, is considered. Based on analyses of the causal structure among attitudes toward vehicle ownership, a vehicle ownership model system is developed. The results suggest that attitudes toward vehicle ownership have effects on vehicle ownership preference, and the accuracy of vehicle ownership choice models can be improved by taking symbolic utility into consideration. The results of the model estimation also indicate the presence of cognitive dissonance of nonowner households and “Veblen effects” of vehicle ownership.