The role of household demographic factors in shaping transportation spending in Turkey

Abstract

Factors at the family scale, for which dynamic decisions and proper investments need to be made at the national level in curbing greenhouse gas emissions, are extremely important for policymakers and investors. We provide information on the roles of how household demographic factors shape transportation patterns and spending in Turkey using the latest survey data collected by the Turkish Statistical Institute (TSI). Alternative sample selection models are estimated to accommodate censoring in expenditure, and the dependent single-hurdle model is found to be the preferred model as a result of model specification tests. Also, different specification tests conducted, including the error-independence test, resulted in rejection of the null hypothesis. Results suggest that the majority of the household economic and sociodemographic characteristics are important determinants of both the probability and level of transportation expenditure. Policy recommendations to curb carbon emissions and integrate environmentally friendly transport systems throughout the country are presented.