Effects of oil prices on traffic congestion in Metro Manila
Date
2006-11-06
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Abstract
This paper will analyze the effects of changes in the price of petroleum on traffic volume and car ownership in Metro Manila. Using available measures and a 20-year period time series data, this paper establishes a· negative relationship of petroleum prices with the demand for travel in the short run, and at the same time, seeks to determine the crucial determinants for the demand for automobiles in the long run. Due to data limitations; the study will only be using data from Metro Manila, and therefore, the results may not be applicable to rural areas. It was seen that car ownership is heavily dependent on income in the long run while traffic volume is very responsive to fuel prices in the short run.
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Keywords
Oil price, Fuel, Fuel industry, Traffic congestion, Traffic, Urban planning