ABSTRACT
This chapter argues that studying influential factors in traffic demand is of great significance to alleviating the current air pollution caused by transportation. It establishes a structural equation model, using the Bayesian estimation method on China and the United States (US) countries considered, taking into account traffic infrastructure, transportation costs and economic activities as potential variables influencing road traffic demand. The chapter suggests that the asymmetric effects of passenger demand and cargo demand are more apparent and that American consumers' expectations for prices differ greatly from expectations in China. Compared with passenger demand, cargo demand is more sensitive to price. In China's case, diesel demand has an asymmetrical effect on both passenger and cargo, while a change in gasoline prices only has an asymmetrical effect on passenger transport demand. In the US, changes in gasoline and diesel prices have asymmetrical effects on passenger and cargo.
