Disentangling policy and structural effects on car-ownership for car-owning and carless US households during and after the COVID-19 pandemic

Abstract

This research analyzed car-ownership in the US during and after the COVID-19 pandemic, by utilizing a nationally representative household survey spanning from January 2020 to March 2022. Using a multilevel Hurdle model with month and state random effects, vehicle ownership trends are separately modeled for car-owning and carless households within the same modeling framework, while accounting for endogeneity and unobserved heterogeneity. An increase in the total amount of economic stimulus funding received increased the odds of vehicle ownership, while high car prices, high levels of housing expenditures, living in multi-family dwelling, and being from minority and low-skilled worker families negatively affected car-ownership. Greater household labor force participation, increases in household size and young persons in the household, living in states with high COVID caseloads and with moderately stringent Stay-at-Home social distancing mandates affected car-ownership propensities differently for car-owning and carless households. The significance of the research is that it disentangled pandemic-related and transportation policy variables from changes in household structure, living arrangements and employment-related characteristics. The analysis jointly considered how short-term pandemic-related influences as well as long-term demographic and occupational factors differently affect car-ownership for car-owning households and those without cars. Policy implications are drawn for consumer protection in the car ownership process, auto loan forbearance in future economic disruptions, strategies for public transportation which has continued to suffer from lower levels of use, and sustainability programs due to higher volumes of older used cars.