Highlights ► Considers gas consumption, car ownership, income, and price for 14 OECD countries. ► Variables are panel I(1) and cointegrated. ► Estimated long- and short-run elasticities are smaller than most previous ones. ► Estimates agree with literature arguing that gasoline price is now more inelastic.
Abstract This paper looks at relationships between gasoline consumption per capita, income, gasoline price, and car ownership for a panel of OECD countries. Estimated long-run and short-run income elasticities are smaller than typically found and gasoline consumption is Granger-caused by gasoline price, but not by car ownership or income. Car ownership is Granger-caused by income and at the margin by gasoline consumption, but not by gasoline price.
The systemic, long-run relation among gasoline demand, gasoline price, income, and vehicle ownership in OECD countries: Evidence from panel cointegration and causality modeling
Transportation Research Part D: Transport and Environment ; 17 , 4 ; 327-331
2012-01-01
5 pages
Article (Journal)
Electronic Resource
English
Long-run relationship among transport demand, income, and gasoline price for the US
Online Contents | 2009
|Long-run relationship among transport demand, income, and gasoline price for the US
Online Contents | 2009
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