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First principles assessment Why introduce car clubs? Demand impacts Short and long run demand responses Level of response Supply impacts Financing requirements Expected impact on key policy objectives Contribution to objectives when promoted to reduce car use Contribution to objectives when promoted to increase accessibility Expected impact on problems Expected winners and losers Barriers to implementation Why introduce car clubs?
The impacts of car clubs are primarily on the demand for car travel. This will therefore contribute to transport policy objectives seeking to reduce congestion and the associated negative impacts. Where an individual accesses a car solely via a club or a household member joins a club as an alternative to purchasing a second vehicle, the demand for public transport, taxis, walking and cycling may also be greater than it would be if the car club did not exist and the individuals concerned purchased cars. Where an individual has purchased their own vehicle, the marginal cost of using other modes is higher. Responses and situations outlines potential responses to car club membership and the situations in which particular responses are encountered. It should be noted that as use of car clubs is voluntary, the impacts are likely to be less than those resulting from measures which are imposed. Thus, impacts will be less than those resulting from urban road charging, for example. Urban road charging is designed to push drivers out of their cars, where as car clubs are designed to pull. However, impacts could be increased if use of car clubs becomes more wide spread. Greater take up could result from utilization of land use planning guidance and decisions to encourage more low car housing developments. As use of car clubs becomes more commonplace, the effect on uptake could become cumulative.
A change of home location may happen where a successful car club attracts people to live within its catchment area. Such an area could be deemed attractive because it allows access to a car club not available else where, or if it is a low car housing development, it could be that a relatively car free environment is deemed more attractive. However, unless there is a step change in willingness to be a part of a car club and the alternative modes available for journeys no longer made by car, such a response is unlikely. Further to this, if success involves expanding to provide access to club vehicles over a very wide geographic area, there may be no need to change home location. Short and long run demand responses There is some potential for considerable long run changes in demand response
as a result of car clubs. The most significant responses will be where
individuals sell their car, households sell a second (or even main) car
or planned purchase of vehicles is permanently deferred. However, there
are few countries in which car club use is wide spread. Thus, the long
term demand response is dependent on how successfully car clubs are established.
Success is likely to be a factor of image, quality of service and geographic
coverage of that service. Whilst, there are some examples which are considered
highly successful, access to a car via a club is still a minority choice
in the areas served. Thus, we are only able to speculate what the long
term demand response might be when a club is particularly successful.
Demand responses illustrates the potential reactions.
An increase in taxi use may also result from car club membership. It is likely to follow the same pattern as increased public transport use and increased walking and cycling. All of these alternatives will only experience in increase in up take where car clubs are the sole means of access to a car. As with other measures, the price elasticity of demand varies with context. As with other calculations of price elasticity, the type of trip, type of traveller, price elasticity of related goods and services and whether the elasticity accounts for short term or long term demand responses are important influential factors in the calculation and interpretation. Whether it is cheaper to access a car via a car club or sole ownership is a debatable issue. It has been suggested that for individuals in the UK with both low and high annual car travel distances (roughly 8000 and 16,000 kilometres per annum respectively) it is cheaper to own and run a small, second hand vehicle (Bonsall et al, 2001). Additionally, for exceedingly low mileage (e.g. only using the car to got to and from the supermarket once a week) accessing a car via a car club is likely to be more expensive than a combination of walk and/or bus, plus taxi for the journey home (Bonsall and Jopson, 2002). In countries where owning and running a vehicle is cheaper than in the UK, the mileage range where access to a car via a club is the cheaper option, when compared to ownership, may be even smaller. Where club car use is the cheaper option and an individual sells their car, the reduction in cost would suggest scope for increased travel. Where this is increased travel by a mode other than the car, such an increase would not be contrary to transport policy aiming to reduce car travel. If a car club is introduced to increase accessibility, there will inevitably be increased car travel. Such a need implies a lack of public transport. However, it is rare for there to be no such provision and many people are dependent on it. Where a car club is introduced, there may be abstraction from the public transport making it unviable. If it is then taken out of service, those who are unable to travel by car would be further disadvantaged. The risk is greater where there is already a very low revenue level or the service already relies on subsidy. Should access to a car also provide access to more distant supplies of goods and services, there may be abstraction from local provision, resulting in a reduction in and lack of local amenity. Supply impacts There will be no increase in the supply of road space, thus for many there will be no increase in supply, merely a change in the way the existing supply is utilised. If car clubs are introduced in deprived areas to increase accessibility, there may be some increase in the choice of modes so long as this is not negated by reductions in public transport service levels as a result of abstraction. If car clubs are to make a significant impact on transport policy objectives they need to attract as many customers as possible over as wide an area as possible. Clearly there is a need to start small and grow, but growth requires profit and reinvestment, whilst attracting customers to generate profit requires an image that appeals to the general public. Thus, so long as the higher tech car clubs can be made successful, they are likely to have greatest potential in terms of meeting transport objectives. Therefore, significant investment will be needed from the outset and this can include an element of subsidy. The BEST car club in Bristol, UK required approximately £10,000 (year 2000 prices) to cover the feasibility study and set up costs. The local authority’s transport plan indicates that a further £15-£20,000 (year 2000 prices) per annum will be needed to cover further expansion and development. This is not an insubstantial figure, but the potential benefits are clearly perceived as worthy of such investment. The potential benefits cited by Bristol City Council include fewer car journeys, which will in turn result in modal shift, making public transport more viable; increases in walking, cycling, home shopping and combined trips; alleviating parking problems; assisting energy efficiency; promoting social inclusion; reducing the need to own a car and providing cars for local business travel (Bristol City Council, 2000). Expected impact on key policy objectives Promotion of a car club can encourage people to increase or decrease their car use depending on how and why it is promoted. Clubs in affluent city areas and low car housing developments are designed to reduce car use. However, the promotion of car clubs in deprived areas where a high proportion of residents suffer some form of social exclusion may well increase car use as a means of increasing accessibility to meet social inclusion objectives. Contribution to objectives when promoted to reduce car use
The impacts on policy objectives outlined in contribution to objectives when promoted to increase accessibility will all be more severe if the increased access to cars encourages people to purchase vehicles of their own. There is a greater risk of this where the increased access to transport has resulted in access to a higher income. Impacts may be further increased where abstraction from public transport results from increased car use and marginal service are no longer operated, thus, forcing further increases in car use. Expected impact on problems As with the contribution to transport policy objectives, the impact
on alleviating key problems varies according to whether car clubs are
promoted to reduce car use or increase accessibility.
*If promotion of car clubs were combined with much improved public transport to the extent that some people were able to sell their cars, these impacts would be greater. The contribution to key problems outlined above will all be greater if the increased access to cars encourages people to purchase vehicles of their own, especially where the increased access to transport has resulted in access to a higher income. Impacts may be further enhanced where abstraction from public transport results from increased car use and marginal service are no longer operated, thus, forcing further increases in car use. It should also be noted that increased accessibility may be better provided through public transport. If provision through a car club means that existing services are discontinued (as maintaining both is likely to be too expensive), those who cannot travel by car will be further disadvantaged. Expected winners and losers One would not expect everybody to benefit equally from any transport
measures. Indeed, with a measure such as car clubs, which can potentially
be promoted for very specific objectives, there can be many losers if
mitigating measures are not included as part of a package.
There are a variety of barriers to the implementation of car clubs outlined
below.
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