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Energy Systems and Technologies for the Coming Century ...

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diploma holders, undergraduates <strong>and</strong> o<strong>the</strong>r qualifications (those possessing mainlyprofessional qualifications from <strong>the</strong> Association of Chartered Certified Accountants(ACCA), Institute of Chartered Secretaries <strong>and</strong> Administrators (ICSA), postgraduates <strong>and</strong>o<strong>the</strong>rs), is accounted. Various levels of income are also considered toge<strong>the</strong>r withhousehold size. An extended family is more likely to have a car than a nuclear one. Adummy variable controlling <strong>for</strong> <strong>the</strong> working place such as Port Louis <strong>and</strong> Ebene isincorporated in <strong>the</strong> model. Travel expenses can as well affect an individual’s mode oftransport. Likewise, <strong>the</strong> time lost in congestion can also impact on <strong>the</strong> transport mode.Table 2 provides <strong>the</strong> estimates of <strong>the</strong> MNL model. An important assumption of thismodel is independence of <strong>the</strong> irrelevant alternatives (IIA) which in line with <strong>the</strong>assumption of independent disturbances. Alternatives, such as choosing a car, bus oro<strong>the</strong>r means of transport, should be independent of each o<strong>the</strong>r. The baseline category in<strong>the</strong> model is bus as a mode of transport. If <strong>the</strong> choice sets are dependent, <strong>the</strong> MNLestimates will be inconsistent. The IIA property can be tested with a Hausmanspecification test <strong>for</strong> <strong>the</strong> MNL model (Hausman <strong>and</strong> McFadden, 1984). Hausman’sspecification test failed to reject <strong>the</strong> null hypo<strong>the</strong>sis that <strong>the</strong> difference is not systematic.Their associated χ 2 statistics are 0.00, 0.00 <strong>and</strong> 0.46 respectively. The IIA conjecturecannot be rejected <strong>and</strong> hence employing a MNL analysis is not inappropriate.Age is found to have no impact on <strong>the</strong> choice of travelling ei<strong>the</strong>r by car or bus. However,as age increases, <strong>the</strong> odds of choosing of choosing o<strong>the</strong>r means of transport ra<strong>the</strong>r thanbus increase by about 11.7 times. This can be interpreted as effects of experience. As ageRisø International <strong>Energy</strong> Conference 2011 Proceedings Page 393

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