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The elasticity of demand for gasoline in China

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Author Info

  • Lin, C.-Y. Cynthia
  • Zeng, Jieyin (Jean)

Abstract

This paper estimates the price and income elasticities of demand for gasoline in China. Our estimates of the intermediate-run price elasticity of gasoline demand range between −0.497 and −0.196, and our estimates of the intermediate-run income elasticity of gasoline demand range between 1.01 and 1.05. We also extend previous studies to estimate the vehicle miles traveled (VMT) elasticity and obtain a range from −0.882 to −0.579.

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File URL: http://www.sciencedirect.com/science/article/pii/S0301421513001742
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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 59 (2013)
Issue (Month): C ()
Pages: 189-197

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Handle: RePEc:eee:enepol:v:59:y:2013:i:c:p:189-197

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

Related research

Keywords: China; Gasoline price elasticity; VMT elasticity;

References

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  1. Wang, Yunshi & Teter, Jacob & Sperling, Daniel, 2011. "China's soaring vehicle population: Even greater than forecasted?," Energy Policy, Elsevier, vol. 39(6), pages 3296-3306, June.
  2. Jonathan E. Hughes & Christopher R. Knittel & Daniel Sperling, 2008. "Evidence of a Shift in the Short-Run Price Elasticity of Gasoline Demand," The Energy Journal, International Association for Energy Economics, vol. 29(1), pages 113-134.
  3. Robert McRae, 1994. "Gasoline Demand in Developing Asian Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 143-156.
  4. Ramanathan, R., 1999. "Short- and long-run elasticities of gasoline demand in India: An empirical analysis using cointegration techniques," Energy Economics, Elsevier, vol. 21(4), pages 321-330, August.
  5. He, Kebin & Huo, Hong & Zhang, Qiang & He, Dongquan & An, Feng & Wang, Michael & Walsh, Michael P., 2005. "Oil consumption and CO2 emissions in China's road transport: current status, future trends, and policy implications," Energy Policy, Elsevier, vol. 33(12), pages 1499-1507, August.
  6. Kui-Yin Cheung & Elspeth Thomson, 2004. "The Demand for Gasoline in China: A Cointegration Analysis," Journal of Applied Statistics, Taylor & Francis Journals, vol. 31(5), pages 533-544.
  7. Lin, C.-Y. Cynthia & Prince, Lea, 2009. "The optimal gas tax for California," Energy Policy, Elsevier, vol. 37(12), pages 5173-5183, December.
  8. Dahl, Carol A, 1979. "Consumer Adjustment to a Gasoline Tax," The Review of Economics and Statistics, MIT Press, vol. 61(3), pages 427-32, August.
  9. 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.
  10. Ramsey, J B & Rasche, R & Allen, Bruce T, 1975. "An Analysis of the Private and Commercial Demand for Gasoline," The Review of Economics and Statistics, MIT Press, vol. 57(4), pages 502-07, November.
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Cited by:
  1. Wittmann, Nadine, 2014. "Regulating gasoline retail markets: The case of Germany," Economics Discussion Papers 2014-17, Kiel Institute for the World Economy.

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