Interdependencies between transport fuel demand, efficiency and quality: An application to Austria

►Dependencies between efficiency, fuel price, quality and fuel demand are modelled. ►Austrian data supports model implications for the defined rounds of rebounds. ►R&D efforts are directed by fuel prices surpassing a threshold on large markets. ►Consumers apply low implicit discount rates for future benefits from efficient cars. ►Effects of policy instruments (fuel efficiency standard, taxes, etc.) are discussed.