Abstract:
The main objective of this study was to identify the drivers of transport fuel expenditure and mode choice in Ghana. Specifically, the study analysed the effects of ICT expenditure on transport fuel market participation and consumption decisions of households; examined the effect of real value of travel time on transport mode choice; and assessed how the effect of ICT expenditure on transport fuel intensity differs among household demographic factors (sex). The double hurdle model was applied to five waves of the Ghana Living Standard Surveys to analyse the first objective. The results show that ICT expenditure, income, household size, urbanisation and education are among the significant variables that relate positively to transport fuel market participation and consumption decisions of households in Ghana. The results also indicate that transport fuel is income and ICT elastic. For the second objective, the study fitted a multinomial logit model to data from the National Household Travel Surveys. It was noticed that relative risk of lost labour productivity and distance are among the significant considerations for transport mode choice between motorised transport versus non-motorised transport among workers in Ghanaian society. Finally, three logistic regressions were estimated for objective three, using data from the GLSS Seven. Interestingly, the result shows that female-headed households in the lower income group have the highest odds of being less fuel intensive than male-headed households. The study, therefore, suggests various policy implications based on the drivers that influence transport fuel market participation and consumption decisions, and those that drive transport mode choice as well as transport fuel intensity of households in Ghana.
