The relationship between gasoline prices and the demand for vehicle fuel efficiency is important for environmental policy but poorly understood in the academic literature. We provide empirical evidence that automobile manufacturers price as if consumers respond to gasoline prices. We derive a reduced-form regression equation from theoretical micro-foundations and estimate the equation with nearly 300,000 vehicle-week-region observations over the period 2003-2006. We found that vehicle prices generally decline in the gasoline price. The decline is larger for inefficient vehicles, and the prices of particularly efficient vehicles actually rise. Structural estimation that ignores these effects underestimates consumer preferences for fuel efficiency.


    Zugriff

    Zugriff über TIB

    Verfügbarkeit in meiner Bibliothek prüfen


    Exportieren, teilen und zitieren



    Titel :

    Automobile Prices, Gasoline Prices, and Consumer Demand for Fuel Economy: Economic Analysis Group Discussion Paper


    Beteiligte:
    A. Langer (Autor:in) / N. Miller (Autor:in)

    Erscheinungsdatum :

    2008


    Format / Umfang :

    43 pages


    Medientyp :

    Report


    Format :

    Keine Angabe


    Sprache :

    Englisch




    Gasoline Prices, Fuel Economy, and the Energy Paradox

    Wozny, Nathan / Allcott, Hunt | DSpace@MIT | 2010

    Freier Zugriff

    How Do Gasoline Prices Affect Fleet Fuel Economy?

    Li, Shanjun / National Bureau of Economic Research | TIBKAT | 2008

    Freier Zugriff

    Who is exposed to gas prices? How gasoline prices affect automobile manufacturers and dealerships

    Busse, Meghan R. / Knittel, Christopher R. / Silva-Risso, Jorge et al. | Springer Verlag | 2016


    Who is Exposed to Gas Prices? How Gasoline Prices Affect Automobile Manufacturers and Dealerships

    National Bureau of Economic Research | TIBKAT | 2012

    Freier Zugriff

    Who is Exposed to Gas Prices? How Gasoline Prices Affect Automobile Manufacturers and Dealerships

    Busse, Meghan R. / National Bureau of Economic Research | TIBKAT | 2012

    Freier Zugriff