Short-run, long-run and cross elasticities of gasoline demand in Brazil

Alves, Denisard; De-Losso, Rodrigo

doi:10.1016/s0140-9883(02)00108-1

Cited by 153 publications

(79 citation statements)

References 8 publications

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“…However, the Durbin-Watson statistics for the cointegrating regressions suggested the presence of cointegration, I(12). When we applied an error correction model similar to Alves and Bueno (2003) we obtained elasticity estimates consistent with results from our other models. …”

Section: Partial Adjustment Modelssupporting

confidence: 78%

Evidence of a Shift in the Short-Run Price Elasticity of Gasoline Demand

2006

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Understanding the sensitivity of gasoline demand to changes in prices and income has important implications for policies related to climate change, optimal taxation and national security, to name only a few. While the short-run price and income elasticities of gasoline demand in the United States have been studied extensively, the vast majority of these studies focus on consumer behavior in the 1970s and 1980s. There are a number of reasons to believe that current demand elasticities differ from these previous periods, as transportation analysts have hypothesized that behavioral and structural factors over the past several decades have changed the responsiveness of U.S. consumers to changes in gasoline prices. In this paper, we compare the price and income elasticities of gasoline demand in two periods of similarly high prices from The estimated short-run income elasticities range from 0.21 to 0.75 and when estimated with the same models are not significantly different between the two periods. One implication of these findings is that gasoline taxes would need to be significantly larger today in order to achieve an equivalent reduction in gasoline consumption. This, coupled with the political difficulties in adopting gasoline taxes, suggests that policies and technologies designed to improve fuel economy are likely becoming relatively more attractive as a means to reduce fuel consumption.

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Section: Partial Adjustment Modelssupporting

confidence: 78%

Evidence of a Shift in the Short-Run Price Elasticity of Gasoline Demand

2006

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“…The most common assumption in the literature is that fuel price and income are the only explanatory variables for VKM demand [31][32][33]. However, considering that the number of vehicles explains some degree of the demand for travel, in this paper we choose price level, income level and vehicle stock as the determinants for passenger travel following the study by Odeck and Johansen [30].…”

Section: The Elasticity Modelmentioning

confidence: 99%

Are Chinese Green Transport Policies Effective? A New Perspective from Direct Pollution Rebound Effect, and Empirical Evidence From the Road Transport Sector

Qiu

2017

Sustainability

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Air pollution has become a serious challenge in China. Emissions from motor vehicles have been found to be one main sources of air pollution. Although the Chinese government has undertaken numerous green policies to mitigate harmful emissions from road transport sector, it is still uncertain for both policy makers and researchers to know whether the policies are effective in the short and long terms. We propose a new concept of "pollution rebound effect" (PRE) to estimate the effectiveness of green traffic policies. We estimate direct air PRE as a measure of the effectiveness of the policies of reducing air pollution from the transport sector based on time-series data from the period 1986-2014. We find that the short-term direct air PRE is −0.4105, and the corresponding long-run PRE is −0.246. The negative results indicate that the direct air PRE does not exist in the road passenger transport sector in China, both in the short term and in the long term during the period 1986-2014. This implies that the Chinese green transport policies are effective in terms of harmful emissions reduction in the transport sector. This research, to the best of our knowledge, is the first attempt to quantify the effectiveness of the green transport policies in the transitional period that China is currently undergoing.

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“…monthly retail fuel prices from Jul-01 to Feb-07) 1 Selects the optimal number of lags according to the Schwarz criterion. Significance level in parentheses.…”

Section: ------------------------------------------------------------mentioning

confidence: 99%

“…This price threshold is broadly the same across car models, given the common software-based technology adopted by carmakers (and introduced originally by autoparts …rm Magneti Marelli, among others). The price threshold is also fairly well known among consumers-it was even communicated by the carmakers in their advertising campaigns 1 . While the uptake of ‡ex has been fast-85% of new cars sold in the …rst quarter of 2007 were ‡ex-the share of ‡ex in the stock of cars naturally grows more gradually, as new cars need to displace old cars-at the end of 2006, ‡ex accounted for 9% of the nationwide ‡eet of passenger cars.…”

Section: Introductionmentioning

confidence: 99%

Is Arbitrage Tying the Price of Ethanol to that of Gasoline? Evidence from the Uptake of Flexible-Fuel Technology

Salvo¹,

Huse²

2011

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractAs much of the world goes searching for alternative sources of energy to oil, Brazil's three-decade experience in developing a successful substitute for gasoline merits attention. Brazil is the only sizable economy to date to have developed a ubiquitously distributed alternative to oil-based fuels in road transportation: ethanol from sugarcane. Perhaps unsurprisingly, the uptake of flexible-fuel (dual-fuel) vehicle technology has been tremendous. We provide a stylized model of the vertical sugar industry which incorporates arbitrage by producers, across domestic and export markets for ethanol and sugar, and arbitrage by consumers, across ethanol and gasoline at the pump. We show that the model stands up well to the empirical covariation in prices over 30 years. In particular, owing to the increasing penetration of flexible-fuel vehicles, consumer arbitrage is tying the retail price of ethanol to that of gasoline. Of relevance to the current "food-versus-fuel" debate, the outward shift of the ethanol demand curve, at price levels where traditional gasoline consumers arbitrage, may lead to higher sugar prices, thanks to substitution in demand (gasoline and ethanol) and in supply (sugar and ethanol).

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Short-run, long-run and cross elasticities of gasoline demand in Brazil

Cited by 153 publications

References 8 publications

Evidence of a Shift in the Short-Run Price Elasticity of Gasoline Demand

Evidence of a Shift in the Short-Run Price Elasticity of Gasoline Demand

Are Chinese Green Transport Policies Effective? A New Perspective from Direct Pollution Rebound Effect, and Empirical Evidence From the Road Transport Sector

Is Arbitrage Tying the Price of Ethanol to that of Gasoline? Evidence from the Uptake of Flexible-Fuel Technology

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