The effect of UK fuel price on the demand for rail transport in the UK from 1997 to 2011

Abstract

This study explores the relationship of fuel price with the demand for rail transport. Current literature of sources related to the demands for rail demand and effects of prices in fuel are critically reviewed. Different methodologies are discussed and a form of Wardman's (2006) regression model is used for analyse through Eviews software package. It is found that there is evidence to suggest that there is a relationship between fuel price and rail transport demand. However, limitations through omitted variables and model misspecification reduced the accuracy and reliability of the results. Improving these limitations will improve the understanding of the relationship between fuel price and rail transport demand.