Author: David T. HartgenPublisher:
ISBN:
Category : Gasoline supply
Languages : en
Pages : 52
Book Description
Initial and Subsequent Consumer Response to Gasoline Shortages
Author: David T. HartgenPublisher:
ISBN:
Category : Gasoline supply
Languages : en
Pages : 52
Book Description
The Consumer Response to Gasoline Price Changes
Author: Kenneth Thomas GillinghamPublisher: Stanford University
ISBN:
Category :
Languages : en
Pages : 298
Book Description
When gasoline prices rise, people notice: the news is filled with reports of pinched household budgets and politicians feeling pressure to do something to ameliorate the burden. Yet, raising the gasoline tax to internalize externalities is widely considered by economists to be among the most economic efficiency-improving policies we could implement in the transportation sector. This dissertation brings new evidence to bear on quantifying the responsiveness to changing gasoline prices, both on the intensive margin (i.e., how much to drive) and the extensive margin (i.e., what vehicles to buy). I assemble a unique and extremely rich vehicle-level dataset that includes all new vehicle registrations in California 2001 to 2009, and all of the mandatory smog check program odometer readings for 2002 to 2009. The full dataset exceeds 49 million observations. Using this dataset, I quantify the responsiveness to gasoline price changes on both margins, as well as the heterogeneity in the responsiveness. I develop a novel structural model of vehicle choice and subsequent utilization, where consumer decisions are modeled in a dynamic setting that explicitly accounts for selection on unobserved driving preference at both the time of purchase and the time of driving. This utility-consistent model allows for the analysis of the welfare implications to consumers and government of a variety of different policies, including gasoline taxes and feebates. I find that consumers are responsive to changing gasoline prices in both vehicle choice and driving decisions, with more responsiveness than in many recent studies in the literature. I estimate a medium-run (i.e., roughly two-year) elasticity of fuel economy with respect to the price of gasoline for new vehicles around 0.1 for California, a response that varies by whether the vehicle manufacturer faces a tightly binding fuel economy standard. I estimate a medium-run elasticity of driving with respect to the price of gasoline around -0.15 for new personal vehicles in the first six years. Older vehicles are driven much less, but tend to be more responsive, with an elasticity of roughly -0.3. I find that the vehicle-level responsiveness in driving to gasoline price changes varies by vehicle class, income, geographic, and demographic groups. I also find that not including controls for economic conditions and not accounting for selection into different types of new vehicles based on unobserved driving preference tend to bias the elasticity of driving away from zero -- implying a greater responsiveness than the true responsiveness. This is an important methodological point, for much of the literature estimating similar elasticities ignores these two issues. These results have significant policy implications for policies to reduce gasoline consumption and greenhouse gas emissions from transportation. The relatively inelastic estimated responsiveness on both margins suggests that a gasoline tax policy may not lead to dramatic reductions in carbon dioxide emissions, but is a relatively non-distortionary policy instrument to raise revenue. When the externalities of driving are considered, an increased gasoline tax may not only be relatively non-distortionary, but even economic efficiency-improving. However, I find that the welfare changes from an increased gasoline tax vary significantly across counties in California, an important consideration for the political feasibility of the policy. Finally, I find suggestive evidence that the ``rebound effect'' of a policy that works only on the extensive margin, such as a feebate or CAFE standards, may be closer to zero than the elasticity of driving with respect to the price of gasoline. This suggestive finding is particularly important for the analysis of the welfare effects of any policy that focuses entirely on the extensive margin.
Special Report
Author: National Research Council (U.S.). Transportation Research BoardPublisher:
ISBN:
Category : Highway research
Languages : en
Pages : 180
Book Description
Proceedings of the Conference on Energy Contingency Planning in Urban Areas, Houston, Texas, April 6-9, 1983
Author: National Research Council (U.S.). Transportation Research BoardPublisher: Transportation Research Board National Research
ISBN:
Category : Political Science
Languages : en
Pages : 116
Book Description
The specific objective of this conference was to assess the state of energy contingency planning, with particular emphasis on the following four issues: (1) Progress in energy contingency planning since the 1979-1980 energy crisis; (2) The new environment of deregulation with determination of the impact on contingency planning; (3) The role of private industry and state and local government officials in contingency planning; and (4) Need to change responses to energy contingency planning in the new environment of deregulation. This report is a summary of the proceedings of the conference.
The Distributional Implications of the Impact of Fuel Price Increases on Inflation
Author: Mr. Kangni R KpodarPublisher: International Monetary Fund
ISBN: 1616356154
Category : Business & Economics
Languages : en
Pages : 34
Book Description
This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the different categories of the overall consumer price index (CPI). We then combine household survey data with the CPI components to construct a CPI index for the poorest and richest income quintiles with the view to assess the distributional impact of the pass-through. To undertake this analysis, the paper provides an update to the Global Monthly Retail Fuel Price Database, expanding the product coverage to premium and regular fuels, the time dimension to December 2020, and the sample to 190 countries. Three key findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad-based in developing economies than in advanced economies. Second, we show that past studies using crude oil prices instead of retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing power of all households declines as fuel prices increase, the distributional impact is progressive. But the progressivity phases out within 6 months after the shock in advanced economies, whereas it persists beyond a year in developing countries.
Oil Price Shocks, Market Response, and Contingency Planning
Author: George HorwichPublisher: American Enterprise Institute
ISBN:
Category : Business & Economics
Languages : en
Pages : 248
Book Description
HRIS Abstracts
Author: National Research Council (U.S.). Highway Research Information ServicePublisher:
ISBN:
Category : Highway research
Languages : en
Pages : 438
Book Description
Journal of Planning Literature
Author: Policy Implications of Recent Behavioral Research in Transportation Demand Management
Author: Martin WachsPublisher:
ISBN:
Category : Automobile drivers
Languages : en
Pages : 18
Book Description
Urban Transportation Abstracts
Author: Publisher:
ISBN:
Category : Urban transportation
Languages : en
Pages : 622
Book Description