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Consumer Preferences for Car sharing: Evidence from a Mobility Mode Choice Experiment in Beijing

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Document pages: 44 pages

Abstract: There is mixed evidence on the viability and the intended environmental outcomes of car sharing to reduce car usage, which poses a challenge for the design of car sharing service and government policy making. In this paper, we use a stated preference experiment to study consumer preferences for car sharing, considering the availability of a wide range of mobility modes and accounting for the effects of key mobility attributes and government policy limiting car ownership. We identify a hierarchical structure of mobility mode choice, where bus and underground fall in the same nest of “public transit”, while car-sharing, private car and taxi are independent alternatives in respective degenerate branches. This choice structure implies that car sharing is a proportional substitute to public transit, private car and taxi. We find that introducing car sharing may lead to an unintended consequence of higher total car usage by attracting public transit users to drive cars, particular the intended car buyers who are locked into the use of public transit due to the vehicle licensing regulation. Our study sheds new light into the design of car sharing service for operators and public policies for policy makers.

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