Travel distance andfFuel efficiency: An estimation of the rebound effect using MicroData in Switzerland

Abstract

We estimate the rebound effect for private cars using cross-section micro-level data in Switzerland for 2010. Our simultaneous equations model accounts for endogeneity of travel distance, vehicle fuel intensity and vehicle weight. Compared to the literature, our paper provides a novelty regarding the data used. Micro-level data and simultaneous equations models have not been used before to estimate the rebound effect. Moreover, among the distance measures we use, one is highly reliable as it was recorded using GIS (Geographical Information System) software. Our preferred results, obtained via 3SLS, point to a substantial rebound effect of 60%, which lies at the higher end of the estimates found in the literature. OLS estimates of the rebound effect are however much lower.

JEL Classification: C31, D12, Q41, R41.