Title: Analyzing the Short-Term Impact of Fuel Price Policy Change on Travel Demand in Malaysian Cities
Abstract: Malaysia is one of the few countries in the world that provide fuel price subsidy to consumers. Due to the recent economic crisis, the Malaysian government has decided to revise the fuel subsidization policy to one that was price-controlled to one that is now tied to the global market demand. Recognizing that the change in fuel subsidization policy can have an impact on personal travel demand, this paper investigates the short term of impact of the policy change on travel demand in the Klang Valley region. Spectral analysis was performed to investigate if the policy change has an impact on travel demand and short term travel demand elasticity with respect to fuel price was evaluated. It was found that in the short term, the policy change has little impact on travel demand in the Klang Valley region. Travel demand elasticities found in the paper is comparable to values found in the literature. It was hypothesized that in Malaysia's context, there are no viable alternative available to the drivers that encourages mode shift in the short term, resulting in the inelastic travel demand behavior. This highlights the importance of viable alternative transportation modes if the transportation authority decides to implement any form of demand management strategies in Malaysia cities.
Publication Year: 2010
Publication Date: 2010-01-01
Language: en
Type: article
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