How much to drive, and how much to use public transport, are modelled as three- and two level decisions, respectively, based on micro-data for Sweden. The choices whether to have a car, whether to drive given access to a car, and how much to drive given that the individual drives at all are then estimated using a three equation model. Also after correcting for other variables, such as income, men are driving much more, and using less public transport, compared to women. People living in big cities are less likely to drive, but those who do are on average driving about as much as others. Age and access to company-cars are also important determinants for travel behaviour, but being a member of an environmental organisation is not. Driving increases with income, but to a lower degree compared to most aggregated studies on national level. The difference is explained in a simple model with income-dependent structural changes, implying that it becomes more difficult to live without a car when average income increases. This indirect effect is found to be of a similar size as the ordinary income elasticity typically found in cross-section analysis within a country or region.
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