IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v253y2022ics0360544222010696.html
   My bibliography  Save this article

Queuing to refuel before price rise in China: How do gasoline price changes affect consumer responses and behaviours?

Author

Listed:
  • Xu, Lei
  • Chen, Jingrui
  • Qu, Fang
  • Wang, Jue
  • Lu, Yi

Abstract

As the largest automobile market in the world, gasoline price has had a profound impact on consumers in China. However, consumers always queue to refuel when gasoline prices rise. To examine the consumer responses and behaviors to gasoline price rise, we built a Motivation-Individuality-Reaction (MIR) model with a novel comprehensive analysis approach that employed a social network-based public survey and a questionnaire-based individual survey. We found that the tax-included gasoline prices are opaque partly because of the neutral public attitude, and while Chinese consumers are sensitive to gasoline prices, the sensitivity appears to decrease when there are continuous price rises. Personal perceptions rather than social-demographics were found to have a significant effect on consumer behaviour, which also explained the queuing to refuel actions. The findings also suggested that gasoline price rises should be no more than 20% over the short term to ensure consumer market stability. Consumer vehicle purchasing behaviours were found to be less sensitive to gasoline prices than vehicle using behaviours, which verified the applicability and effectiveness of the MIR model in analyzing consumer daily behaviours. The proposed model and mixed-methods-based approach could be applied to a wider range of social science-based energy research and behavioural economics analysis.

Suggested Citation

  • Xu, Lei & Chen, Jingrui & Qu, Fang & Wang, Jue & Lu, Yi, 2022. "Queuing to refuel before price rise in China: How do gasoline price changes affect consumer responses and behaviours?," Energy, Elsevier, vol. 253(C).
  • Handle: RePEc:eee:energy:v:253:y:2022:i:c:s0360544222010696
    DOI: 10.1016/j.energy.2022.124166
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544222010696
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.energy.2022.124166?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Spiller, Elisheba & Stephens, Heather M. & Chen, Yong, 2017. "Understanding the heterogeneous effects of gasoline taxes across income and location," Resource and Energy Economics, Elsevier, vol. 50(C), pages 74-90.
    2. Baghestani, Hamid, 2019. "An analysis of vehicle-buying attitudes of US consumers," Research in Transportation Economics, Elsevier, vol. 75(C), pages 62-68.
    3. Stephen Pui-Ming Yeung, 2004. "Teaching Approaches in Geography and Students’ Environmental Attitudes," Environment Systems and Decisions, Springer, vol. 24(2), pages 101-117, June.
    4. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    5. Chen, Haotian & Smyth, Russell & Zhang, Xibin, 2017. "A Bayesian sampling approach to measuring the price responsiveness of gasoline demand using a constrained partially linear model," Energy Economics, Elsevier, vol. 67(C), pages 346-354.
    6. Banzhaf, H. Spencer & Kasim, M. Taha, 2019. "Fuel consumption and gasoline prices: The role of assortative matching between households and automobiles," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 1-25.
    7. Siqi Zheng & Jianghao Wang & Cong Sun & Xiaonan Zhang & Matthew E. Kahn, 2019. "Air pollution lowers Chinese urbanites’ expressed happiness on social media," Nature Human Behaviour, Nature, vol. 3(3), pages 237-243, March.
    8. Shanjun Li & Joshua Linn & Erich Muehlegger, 2014. "Gasoline Taxes and Consumer Behavior," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 302-342, November.
    9. Hymel, Kent M. & Small, Kenneth A., 2015. "The rebound effect for automobile travel: Asymmetric response to price changes and novel features of the 2000s," Energy Economics, Elsevier, vol. 49(C), pages 93-103.
    10. Mark R. Jacobsen, 2013. "Evaluating US Fuel Economy Standards in a Model with Producer and Household Heterogeneity," American Economic Journal: Economic Policy, American Economic Association, vol. 5(2), pages 148-187, May.
    11. Reibstein, David J & Lovelock, Christopher H & Dobson, Ricardo de P, 1980. "The Direction of Causality between Perceptions, Affect, and Behavior: An Application to Travel Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 6(4), pages 370-376, March.
    12. Givord, Pauline & Grislain-Letrémy, Céline & Naegele, Helene, 2018. "How do fuel taxes impact new car purchases? An evaluation using French consumer-level data," Energy Economics, Elsevier, vol. 74(C), pages 76-96.
    13. Srivastava, Joydeep & Lurie, Nicholas, 2001. "A Consumer Perspective on Price-Matching Refund Policies: Effect on Price Perceptions and Search Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(2), pages 296-307, September.
    14. Wang, Shanyong & Wang, Jing & Lin, Shoufu & Li, Jun, 2019. "Public perceptions and acceptance of nuclear energy in China: The role of public knowledge, perceived benefit, perceived risk and public engagement," Energy Policy, Elsevier, vol. 126(C), pages 352-360.
    15. Kaplowitz, Stan A. & McCright, Aaron M., 2015. "Effects of policy characteristics and justifications on acceptance of a gasoline tax increase," Energy Policy, Elsevier, vol. 87(C), pages 370-381.
    16. Moshiri, Saeed, 2020. "Consumer responses to gasoline price and non-price policies," Energy Policy, Elsevier, vol. 137(C).
    17. Tan, Jijun & Xiao, Junji & Zhou, Xiaolan, 2019. "Market equilibrium and welfare effects of a fuel tax in China: The impact of consumers' response through driving patterns," Journal of Environmental Economics and Management, Elsevier, vol. 93(C), pages 20-43.
    18. Du, Zhili & Lin, Boqiang, 2017. "How oil price changes affect car use and purchase decisions? Survey evidence from Chinese cities," Energy Policy, Elsevier, vol. 111(C), pages 68-74.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mamipour, Siab & Salem, Ali Asghar & Sayadi, Mohammad & Azizkhani, Masoumeh, 2023. "Retail gasoline pricing in a subsidized energy market: An empirical analysis from AIDS model for Iran," Energy Policy, Elsevier, vol. 183(C).
    2. Su, Chi-Wei & Wang, Dan & Mirza, Nawazish & Zhong, Yifan & Umar, Muhammad, 2023. "The impact of consumer confidence on oil prices," Energy Economics, Elsevier, vol. 124(C).
    3. Jakub Horák & Michaela Jannová, 2023. "Predicting the Oil Price Movement in Commodity Markets in Global Economic Meltdowns," Forecasting, MDPI, vol. 5(2), pages 1-16, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Greene, David L. & Sims, Charles B. & Muratori, Matteo, 2020. "Two trillion gallons: Fuel savings from fuel economy improvements to US light-duty vehicles, 1975–2018," Energy Policy, Elsevier, vol. 142(C).
    2. Gillingham, Kenneth & Munk-Nielsen, Anders, 2019. "A tale of two tails: Commuting and the fuel price response in driving," Journal of Urban Economics, Elsevier, vol. 109(C), pages 27-40.
    3. Yeh, Sonia & Burtraw, Dallas & Sterner, Thomas & Greene, David, 2021. "Tradable performance standards in the transportation sector," Energy Economics, Elsevier, vol. 102(C).
    4. Giménez-Nadal, J. Ignacio & Molina, José Alberto, 2019. "Green commuting and gasoline taxes in the United States," Energy Policy, Elsevier, vol. 132(C), pages 324-331.
    5. Wang, Xiao-Wu & Cao, Yu-Mei & Zhang, Ning, 2021. "The influences of incentive policy perceptions and consumer social attributes on battery electric vehicle purchase intentions," Energy Policy, Elsevier, vol. 151(C).
    6. Mehzabin Tuli, Farzana & Mitra, Suman & Crews, Mariah B., 2021. "Factors influencing the usage of shared E-scooters in Chicago," Transportation Research Part A: Policy and Practice, Elsevier, vol. 154(C), pages 164-185.
    7. Hsu, Chia-Lin & Chang, Chi-Ya & Yansritakul, Chutinart, 2017. "Exploring purchase intention of green skincare products using the theory of planned behavior: Testing the moderating effects of country of origin and price sensitivity," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 145-152.
    8. Banzhaf, H. Spencer & Kasim, M. Taha, 2019. "Fuel consumption and gasoline prices: The role of assortative matching between households and automobiles," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 1-25.
    9. Rik L. Rozendaal & Herman R. J. Vollebergh, 2021. "Policy-Induced Innovation in Clean Technologies: Evidence from the Car Market," CESifo Working Paper Series 9422, CESifo.
    10. Arik Levinson, 2019. "Energy Efficiency Standards Are More Regressive Than Energy Taxes: Theory and Evidence," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(S1), pages 7-36.
    11. Greene, David L. & Greenwald, Judith M. & Ciez, Rebecca E., 2020. "U.S. fuel economy and greenhouse gas standards: What have they achieved and what have we learned?," Energy Policy, Elsevier, vol. 146(C).
    12. Adu-Gyamfi, Gibbson & Song, Huaming & Nketiah, Emmanuel & Obuobi, Bright & Adjei, Mavis & Cudjoe, Dan, 2022. "Determinants of adoption intention of battery swap technology for electric vehicles," Energy, Elsevier, vol. 251(C).
    13. Tilov, Ivan & Weber, Sylvain, 2023. "Heterogeneity in price elasticity of vehicle kilometers traveled: Evidence from micro-level panel data," Energy Economics, Elsevier, vol. 127(PA).
    14. Simarpreet Kaur & Sangeeta Arora, 2023. "Understanding customers’ usage behavior towards online banking services: an integrated risk–benefit framework," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(1), pages 74-98, March.
    15. Wang, Tingting & Chen, Cynthia, 2012. "Attitudes, mode switching behavior, and the built environment: A longitudinal study in the Puget Sound Region," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1594-1607.
    16. Shaw, Charles, 2020. "Econometric Analysis of Demand for Petrol in India, 1966-2019," MPRA Paper 104797, University Library of Munich, Germany.
    17. Joshua Linn, 2016. "The Rebound Effect for Passenger Vehicles," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    18. van Wee, Bert & De Vos, Jonas & Maat, Kees, 2019. "Impacts of the built environment and travel behaviour on attitudes: Theories underpinning the reverse causality hypothesis," Journal of Transport Geography, Elsevier, vol. 80(C).
    19. De Vos, Jonas, 2018. "Do people travel with their preferred travel mode? Analysing the extent of travel mode dissonance and its effect on travel satisfaction," Transportation Research Part A: Policy and Practice, Elsevier, vol. 117(C), pages 261-274.
    20. Dimitropoulos, Alexandros & Oueslati, Walid & Sintek, Christina, 2018. "The rebound effect in road transport: A meta-analysis of empirical studies," Energy Economics, Elsevier, vol. 75(C), pages 163-179.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:253:y:2022:i:c:s0360544222010696. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.