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Meta-analysis of the income and price elasticities of gasoline demand: public policy implications for Latin America

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  • Galindo, Luis Miguel
  • Samaniego, Joseluis
  • Alatorre, José Eduardo

Abstract

By means of a meta-analysis, this article sets out to estimate average values for the income and price elasticities of gasoline demand and to analyse the reasons for the variations in the elasticities reported by the literature. The findings show that there is publication bias, that the volatility of elasticity estimates is not due to sampling errors alone, and that there are systematic factors explaining these differences. The income and price elasticities of gasoline demand differ between the short and long run and by region, and the estimation can appropriately include the vehicle fleet and the prices of substitute goods, the data types and the estimation methods used. The presence of a low price elasticity suggests that a fuel tax will be inadequate to control rising consumption in a context of rapid economic growth.

Suggested Citation

  • Galindo, Luis Miguel & Samaniego, Joseluis & Alatorre, José Eduardo, 2015. "Meta-analysis of the income and price elasticities of gasoline demand: public policy implications for Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    • Handle: RePEc:ecr:col070:40057
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    References listed on IDEAS

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    Cited by:

    1. Oladosu, Gbadebo A. & Leiby, Paul N. & Bowman, David C. & Uría-Martínez, Rocio & Johnson, Megan M., 2018. "Impacts of oil price shocks on the United States economy: A meta-analysis of the oil price elasticity of GDP for net oil-importing economies," Energy Policy, Elsevier, vol. 115(C), pages 523-544.
    2. Kolawole Ogundari & Bolarinwa Olufemi Daniel, 2018. "Working Paper 294 - Agricultural Innovations, Production, and Household Welfare in Africa," Working Paper Series 2421, African Development Bank.
    3. Luìs, Galindo & Giulio, Guarini & Gabriel, Porcile, 2020. "Environmental innovations, income distribution, international competitiveness and environmental policies: a Kaleckian growth model with a balance of payments constraint," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 16-25.

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