S le vine - the time and place of the company car (rgs aug 2013) (2)

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The company car’s time and place: Establishing the spatio-temporal patterns of a unique form of car ownership by
Scott Le Vine (Imperial College London)
Peter Jones (University College London)
John Polak (Imperial College London)
Presented in The Geography of Business Travel session at the RGS conference 2013

Published in: Business, Automotive
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S le vine - the time and place of the company car (rgs aug 2013) (2)

  1. 1. 1 The Company Car’s time and place: Establishing the spatio-temporal patterns of a unique form of car ownership Scott Le Vine (slevine@imperial.ac.uk) Peter Jones John Polak RGS-IBG Conference August 2013
  2. 2. 2 Relevance • Car as compensation taxed at a lower rate than salary – accident of history with substantial inertia • Transport policy ‘success story’ • Under-appreciated contributor to broader trends
  3. 3. 3 Motivating questions • Company car use is reducing – is it shifting to personal car use? • Does another family member having a company car mean you drive less? • How, when and where are company cars used? -4,000 -3,500 -3,000 -2,500 -2,000 -1,500 -1,000 -500 0 500 1,000 1,500 2,000 2,500 3,000 3,500 -3,500 -3,000 -2,500 -2,000 -1,500 -1,000 -500 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Changeinaverageannualcompanycardrivingmileage(from1995/7) Change in average annual personal car driving mileage (from 1995/7) Men aged 30 to 59, in full-time employment Average for all SEG classes Employer/manager Professional Non-manual Personal service Manual Self-employed non-professional Other 2000/2 2005/7 2008/10 - 500 1,000 1,500 2,000 2,500 3,000 15 20 25 30 35 40 45 50 55 60 65 70 75 Averageannualcompanycardrivingmileage Age (5-year-of-age moving average) Men, 1995/7 Men, 2000/2 Men, 2005/7 Men, 2008/10 Women, 1995/7 Women, 2000/2 Women, 2005/7 Women, 2008/10
  4. 4. 4 A middle-aged, male phenomenon - 500 1,000 1,500 2,000 2,500 3,000 15 20 25 30 35 40 45 50 55 60 65 70 75 Averageannualcompanycardrivingmileage Age (5-year-of-age moving average) Men, 1995/7 Men, 2000/2 Men, 2005/7 Men, 2008/10 Women, 1995/7 Women, 2000/2 Women, 2005/7 Women, 2008/10
  5. 5. 5 Limited evidence of substitution -4,000 -3,500 -3,000 -2,500 -2,000 -1,500 -1,000 -500 0 500 1,000 1,500 2,000 2,500 3,000 3,500 -3,500 -3,000 -2,500 -2,000 -1,500 -1,000 -500 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Changeinaverageannualcompanycardrivingmileage(from1995/7) Change in average annual personal car driving mileage (from 1995/7) Men aged 30 to 59, in full-time employment Average for all SEG classes Employer/manager Professional Non-manual Personal service Manual Self-employed non-professional Other 2000/2 2005/7 2008/10
  6. 6. 6 Further investigation of substitution • Multivariate regression (with controls for confounding effects) of driving mileage by British adults (‘95- ’10) • n=201K; r2 = 0.36 • Individual-year dummy variables to capture exogenous shifts -250 0 250 500 750 1,000 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Milesperyear Year-specific errorterms -2,500 0 2,500 5,000 7,500 10,000 12,500 Keeps a company car Keeps a company car & receives free fuel Does not keep a company car, but another household member does Does not keep a company car and receive free fuel, but another household member does Milesperyear Effectsof interest
  7. 7. 7 Further investigation of substitution (2) -2,500 0 2,500 5,000 7,500 10,000 12,500 Keeps a company car Keeps a company car & receives free fuel Does not keep a company car, but another household member does Does not keep a company car and receive free fuel, but another household member does Milesperyear Effectsof interest
  8. 8. 8 Changing profile of CC drivers Average income of company car drivers 1995/7 £41.5K 2000/2 £42.7K 2005/7 £39.7K 2008/10 £37.5K (2010 prices, RPI-adjusted)
  9. 9. 9 When are company cars used? Distribution of journeys by journey start time
  10. 10. 10 How are company cars used? (1)
  11. 11. 11 How are company cars used? (2) Company car Personal car All other purposes 10 miles 7 miles Business 35 miles 16 miles Commuting 17 miles 9 miles Average journey length
  12. 12. 12 How are company cars used? (3)
  13. 13. 13 Where are company cars? • More prevalent in Greater South East than rest of GB in 1990s; less so today • We analysed personal car and company car movements using 5 concentric geographies A: Central London (within Inner Ring Road) B: Rest of Inner London C: Outer London D: Greater South East (SE and Eastern GORs) E. Rest of GB A B CDE
  14. 14. 14 Where are company cars kept?
  15. 15. 15 Where are company cars used? • More likely than personal cars to travel radially • Company cars are 9% of car-trips in/out of Central London; 8% of all radial trips; 4% of others
  16. 16. 16 Where are company cars used? (2)
  17. 17. 17 Where are company cars used? (3) • Half (48%) of London personal car trips are O.L. to/from O.L. • 35% of company car trips are O.L.-O.L. • But a greater proportion of company car travel is between O.L. and Home Counties
  18. 18. 18 Summary • Some evidence that company car mileage is ‘excess’ – i.e. not a perfect substitute for personal car mileage • No evidence of a company car driver’s presence in HH suppressing other HH members’ driving mileage − But we looked at people, not vehicles • Company car trips are disproportionately radial, in peak periods, in peak direction

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