Gasoline prices, gasoline consumption, and new-vehicle fuel economy: evidence for a large sample of countries

dc.contributor.authorBurke, Paul J.
dc.contributor.authorNishitateno, Shuhei
dc.date.accessioned2015-07-20T02:28:17Z
dc.date.available2015-07-20T02:28:17Z
dc.date.issued2013-03
dc.date.updated2015-12-11T07:28:10Z
dc.description.abstractCountries differ considerably in terms of the price drivers pay for gasoline. This paper uses data for 132 countries for the period 1995–2008 to investigate the implications of these differences for the consumption of gasoline for road transport. To address the potential for simultaneity bias,we use both a country's oil reserves and the international crude oil price as instruments for a country's average gasoline pump price. We obtain estimates of the long-run price elasticity of gasoline demand of between −0.2 and −0.5. Using newly available data for a sub-sample of 43 countries, we also find that higher gasoline prices induce consumers to substitute to vehicles that aremore fuel-efficient, with an estimated elasticity of+0.2. Despite the small size of our elasticity estimates, there is considerable scope for low-price countries to achieve gasoline savings and vehicle fuel economy improvements via reducing gasoline subsidies and/or increasing gasoline taxes.
dc.description.sponsorshipFunding was received from the ANU Research School of Asia and the Pacific.en_AU
dc.identifier.issn0140-9883en_AU
dc.identifier.urihttp://hdl.handle.net/1885/14350
dc.publisherElsevier
dc.rights© 2012 Elsevier B.V. http://www.sherpa.ac.uk/romeo/issn/0140-9883/..."Authors pre-print on any website, including arXiv and RePEC" from SHERPA/RoMEO site (as at 20/07/15)
dc.sourceEnergy Economics
dc.subjectVehicle
dc.subjectGasoline demand
dc.subjectFuel use
dc.subjectFuel economy
dc.subjectGasoline price
dc.titleGasoline prices, gasoline consumption, and new-vehicle fuel economy: evidence for a large sample of countries
dc.typeJournal article
dcterms.dateAccepted2012-09-20
local.bibliographicCitation.lastpage370en_AU
local.bibliographicCitation.startpage363en_AU
local.contributor.affiliationBurke, P. J., Australian National Universityen_AU
local.contributor.authoremailpaul.j.burke@anu.edu.auen_AU
local.contributor.authoruidu4372088en_AU
local.identifier.absfor140217 - Transport Economicsen_AU
local.identifier.absseo850702 - Energy Conservation and Efficiency in Transporten_AU
local.identifier.ariespublicationf5625xPUB2493
local.identifier.citationvolume36en_AU
local.identifier.doi10.1016/j.eneco.2012.09.008en_AU
local.identifier.scopusID2-s2.0-84874332854
local.identifier.thomsonID000316240100032
local.identifier.uidSubmittedByu4372088en_AU
local.publisher.urlhttp://www.elsevier.com/en_AU
local.type.statusSubmitted Versionen_AU

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