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Fuel demand on UK roads and dieselisation of fuel economy

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  • Bonilla, David
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    Abstract

    Because of high oil prices, and climate change policy, governments are now seeking ways to improve new car fuel economy thus contributing to air quality and energy security. One strategy is to increase dieselisation rates of the vehicle fleet. Recent trends in fuel economy show improvement since 1995, however, efforts need to go further if the EU Voluntary Agreement targets on CO2 (a greenhouse gas emission standard) are to be achieved. Trends show diesel car sales have accelerated rapidly and that the advantage of new car fuel economy of diesel cars over gasoline ones is narrowing posing a new challenge. We estimate the demand for new car fuel economy in the UK. In the long-run consumers buy fuel economy, but not in the short-run. We found that long-term income and price changes were the main drivers to achieve improvements particularly for diesel cars and that there is no break in the trend of fuel economy induced by the agreement adopted in the 1990s. Policy should target more closely both consumer choice of, and use of, diesel cars.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 37 (2009)
    Issue (Month): 10 (October)
    Pages: 3769-3778

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    Handle: RePEc:eee:enepol:v:37:y:2009:i:10:p:3769-3778

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

    Related research

    Keywords: Fuel demand Diesel fuel economy Car diesel sales;

    References

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    Cited by:
    1. Mattila, Tuomas & Antikainen, Riina, 2011. "Backcasting sustainable freight transport systems for Europe in 2050," Energy Policy, Elsevier, vol. 39(3), pages 1241-1248, March.
    2. Mahlia, T.M.I. & Tohno, S. & Tezuka, T., 2012. "History and current status of the motor vehicle energy labeling and its implementation possibilities in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 1828-1844.
    3. de Freitas, Luciano Charlita & Kaneko, Shinji, 2011. "Ethanol demand in Brazil: Regional approach," Energy Policy, Elsevier, vol. 39(5), pages 2289-2298, May.
    4. Kloess, Maximilian & Müller, Andreas, 2011. "Simulating the impact of policy, energy prices and technological progress on the passenger car fleet in Austria--A model based analysis 2010-2050," Energy Policy, Elsevier, vol. 39(9), pages 5045-5062, September.
    5. Lovelace, R. & Beck, S.B.M. & Watson, M. & Wild, A., 2011. "Assessing the energy implications of replacing car trips with bicycle trips in Sheffield, UK," Energy Policy, Elsevier, vol. 39(4), pages 2075-2087, April.
    6. Gallo, Mariano, 2011. "A fuel surcharge policy for reducing road traffic greenhouse gas emissions," Transport Policy, Elsevier, vol. 18(2), pages 413-424, March.
    7. Tovar, Miguel A., 2011. "An integral evaluation of dieselisation policies for households' cars," Energy Policy, Elsevier, vol. 39(9), pages 5228-5242, September.

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