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Estimating the effect of urban density on fuel demand

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  • Karathodorou, Niovi
  • Graham, Daniel J.
  • Noland, Robert B.

Abstract

Much of the empirical literature on fuel demand presents estimates derived from national data which do not permit any explicit consideration of the spatial structure of the economy. Intuitively we would expect the degree of spatial concentration of activities to have a strong link with transport fuel consumption. The present paper addresses this theme by estimating a fuel demand model for urban areas to provide a direct estimate of the elasticity of demand with respect to urban density. Fuel demand per capita is decomposed into car stock per capita, fuel consumption per kilometre and annual distance driven per car per year. Urban density is found to affect fuel consumption, mostly through variations in the car stock and in the distances travelled, rather than through fuel consumption per kilometre.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 32 (2010)
Issue (Month): 1 (January)
Pages: 86-92

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Handle: RePEc:eee:eneeco:v:32:y:2010:i:1:p:86-92

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Web page: http://www.elsevier.com/locate/eneco

Related research

Keywords: Urban density Fuel demand Elasticity SURE;

References

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  1. Gyo-Eon Shim & Sung-Mo Rhee & Kun-Hyuck Ahn & Sung-Bong Chung, 2006. "The relationship between the characteristics of transportation energy consumption and urban form," The Annals of Regional Science, Springer, vol. 40(2), pages 351-367, June.
  2. Mindali, Orit & Raveh, Adi & Salomon, Ilan, 2004. "Urban density and energy consumption: a new look at old statistics," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(2), pages 143-162, February.
  3. Baltagi, Badi H. & Griffin, James M., 1983. "Gasoline demand in the OECD : An application of pooling and testing procedures," European Economic Review, Elsevier, vol. 22(2), pages 117-137, July.
  4. Puller, Steven L. & Greening, Lorna A., 1999. "Household adjustment to gasoline price change: an analysis using 9 years of US survey data," Energy Economics, Elsevier, vol. 21(1), pages 37-52, February.
  5. Espey, Molly, 1998. "Gasoline demand revisited: an international meta-analysis of elasticities," Energy Economics, Elsevier, vol. 20(3), pages 273-295, June.
  6. van de Coevering, Paul & Schwanen, Tim, 2006. "Re-evaluating the impact of urban form on travel patternsin Europe and North-America," Transport Policy, Elsevier, vol. 13(3), pages 229-239, May.
  7. Daniel J. Graham & Stephen Glaister, 2002. "The Demand for Automobile Fuel: A Survey of Elasticities," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 36(1), pages 1-25, January.
  8. Drollas, Leonidas P., 1984. "The demand for gasoline : Further evidence," Energy Economics, Elsevier, vol. 6(1), pages 71-82, January.
  9. Espey, Molly, 1996. "Watching the fuel gauge: An international model of automobile fuel economy," Energy Economics, Elsevier, vol. 18(1-2), pages 93-106, April.
  10. Kenworthy, Jeffrey R. & Laube, Felix B., 1999. "Patterns of automobile dependence in cities: an international overview of key physical and economic dimensions with some implications for urban policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(7-8), pages 691-723.
  11. Dahl, Carol & Sterner, Thomas, 1991. "Analysing gasoline demand elasticities: a survey," Energy Economics, Elsevier, vol. 13(3), pages 203-210, July.
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Citations

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Cited by:
  1. Valentina Bosetti & Thomas Longden, 2012. "Light Duty Vehicle Transportation and Global Climate Policy: The Importance of Electric Drive Vehicles," Working Papers 2012.11, Fondazione Eni Enrico Mattei.
  2. MORIKAWA Masayuki, 2011. "Population Density and Efficiency in Energy Consumption: An empirical analysis of service establishments," Discussion papers 11058, Research Institute of Economy, Trade and Industry (RIETI).
  3. Liddle, Brantley & Lung, Sidney, 2013. "Might electricity consumption cause urbanization instead? Evidence from heterogeneous panel long-run causality tests," MPRA Paper 52333, University Library of Munich, Germany.
  4. Fullerton, Thomas M., Jr. & Munoz Sapien, Gabriel & Barraza de Anda, Martha P. & Dominguez Ruvalcaba, Lisbeily, 2011. "Dinámica del Consumo de Gasolina en Ciudad Juárez, Chihuahua
    [Gasoline Consumption Dynamics in Ciudad Juárez, Chihuahua]
    ," MPRA Paper 46853, University Library of Munich, Germany, revised 15 Jun 2012.
  5. Keirstead, James & Jennings, Mark & Sivakumar, Aruna, 2012. "A review of urban energy system models: Approaches, challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3847-3866.
  6. Su, Qing, 2011. "The effect of population density, road network density, and congestion on household gasoline consumption in U.S. urban areas," Energy Economics, Elsevier, vol. 33(3), pages 445-452, May.
  7. Liddle, Brantley, 2013. "Urban Density and Climate Change: A STIRPAT Analysis using City-level Data," MPRA Paper 52089, University Library of Munich, Germany.
  8. Jun Li, 2011. "Decoupling urban transport from GHG emissions in Indian cities--A critical review and perspectives," Post-Print hal-00596587, HAL.
  9. Felix Creutzig, 2012. "Avoiding Carbon Lock-In: Policy Options for Advancing Structural Change," Working Papers 1, Department of Climate Change Economics, TU Berlin, revised Feb 2012.
  10. Liddle, Brantley, 2013. "Urban Transport Pollution: Revisiting the Environmental Kuznets Curve," MPRA Paper 53632, University Library of Munich, Germany.

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