Several that formulation of transport policy should take into

Several studies have examined factors that influence
growth in vehicle ownership around the globe. Quite a number of the studies
focused on European countries.  Matas and
Raymond (2008) analyzed the factors affecting car ownership in Spain.  They found that growth in car ownership was
sensitive to income, quality of public transport and employment.  The factors driving growth in car ownership
were found to be similar for small municipalities in the past two decades.  Dargay (2002) examined the determinants of car
ownership in rural and urban areas of United Kingdom.  The result showed that car ownership was more
responsive to the dynamics in motoring costs for urban households than was the
case for rural households.  However, both
groups of households were sensitive to changes in costs of purchasing cars.  Cost of fuel did not have a significant
effect in rural areas although it had little impact on car ownership in urban
areas. He opined that formulation of transport policy should take into
consideration the insensitivity of car ownership to costs of fuel in rural
households. Similarly, Romilly et al (2000) found that income, motoring costs
and bus fare are the determinants of vehicle ownership in Britain.  The elasticity was significant in accordance with
the expectation of economic theory. Erdem and Naztiogli (2013) analyzed the
determinants of vehicle ownership in EU countries.  The study found that vehicle ownership is
influenced by vehicle price, fuel price, industrial production, interest rate
and trade. The implication of the results is that income, quality of public transport,
employment and vehicle price are the major drivers of vehicle ownership among
Europeans.

  Most
studies in Asia focused on South-east Asian countries of China, India and Hong
Kong. Wu et al (2014) discovered that per capita G   DP rather than per capita income was the economic factor that
influences vehicle ownership in China. 
They advocated for increased emphasis on the production of energy
efficient vehicles. Sharma et al (2011) examined the impact of population
growth and economic development on the growth rate of motor vehicles in India.
The result showed that economic development was the most important factor
influencing vehicle growth.  It was
followed in descending order by population growth and increase in
urbanization.  The
study opined that wide range of economic and industrial approaches
should be developed to promote accessibility and curb
motor vehicle activity. Tam and Lam (1999) modeled car ownership in Hong
Kong. The results showed that monthly household income, vehicle license fee,
home and parking fee, as well as car usage cost were the key drivers of ownership.
In effect, GDP, economic development and household income are the three key
determinants of vehicle ownership in South-east Asia.

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Studies
on determinants of vehicle ownership in South America were examined in Brazil
and Chile. Lee and Kang (2008) found that price of automobile, price of fuel,
lending rate and gross domestic products were the significant factors that
influence automobile demand in Brazil. 
This indicates that automobile demand increases with increase in the
aforementioned factors. Zegras and Hannan (2012) showed that preference for
vehicle ownership changes over time and responds significantly to demographic,
socio-economic, and land use factors in Santiago de Chile.  The study advocated for assessment of policy
and planning implications on the dynamics of automobile ownership. The
indication is that socio-economic factors namely: gross domestic product, price
of automobile, fuel price, population, and interest rate as well as land use
factors drive vehicle ownership in South America.

In
Australia, Tsan et al (2011) found that income, fuel price, employment,
accessibility and location effects are the key determinants of car ownership in
Sydney area.  The outcome of the study
provided appropriate basis for the large scale forecasting of travel demand.

Two
studies that carried out a global analysis of the determinants of vehicle
ownership are the works of Dargay et al (2007) and Dargay and Gately (1999).
They revealed a strong relationship between vehicle ownership and income growth
worldwide.  This indicates that growing
wealth is a strong determinant of vehicle demand.  The studies suggested that policy makers
should slow down the growth in stock of vehicles through taxation, promotion of
public transport and appropriate urban planning. This indicates that income is
a very strong driver of global vehicle ownership.

Studies
in United States of America showed mixed results. Liu et al (2011) found that
household income, household structure, accessibility to public transport,
urbanization and ageing societies have significant influence on vehicle
ownership in USA. Improved public transportation system was found to produce a
greater reduction in vehicle ownership. On the contrary, Liu (2010) found that
in Maryland, USA, income, density and fuel price have greater effect on vehicle
usage than on vehicle ownership.  This is
because changes in income, density and fuel price results in changes in peoples
travel pattern than buying cars. Unemployment rate was insensitive to both
vehicle ownership and use.