کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5065131 | 1476727 | 2013 | 8 صفحه PDF | دانلود رایگان |
Countries 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 â 0.2 and â 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 are more 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.
⺠We estimate the determinants of gasoline demand and new-vehicle fuel economy. ⺠Estimates are for a large sample of countries for the period 1995-2008. ⺠We instrument for gasoline prices using oil reserves and the world crude oil price. ⺠Gasoline demand and fuel economy are inelastic with respect to the gasoline price. ⺠Large energy efficiency gains are possible via higher gasoline prices.
Journal: Energy Economics - Volume 36, March 2013, Pages 363-370