Demand for New Car Fuel Economy in the UK, 1970-2005
AbstractDuring the past thirty years, governments have sought to stimulate improvements in new car fuel economy to contribute to air quality, energy security, and climate change goals. We analysed the demand for new car fuel economy in the UK using a two-stage econometric model to investigate the drivers of this demand in the short and long terms over the period 1970-2004. We found that higher incomes and long-term price changes were the main drivers to achieve improvements in fuel economy, particularly for petrol cars, and that new car fuel economy changes were scarcely affected by the Voluntary Agreement on CO 2 emissions reductions adopted in the 1990s. We found, in agreement with other studies, that the demand for fuel economy was price inelastic for both fuels. Our calculated long-term income elasticity (petrol with −0.31 and diesel fuels with −0.20) values are above the range of international studies for petrol but within the range for diesel. An aggregate model of fuel economy gives a fuel price elasticity of −0.32 and an elasticity of −0.26 with respect to UK disposable income. Â© 2009 LSE and the University of Bath
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy.
Volume (Year): 43 (2009)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.bath.ac.uk/e-journals/jtep
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Broadstock, David C. & Hunt, Lester C., 2010.
"Quantifying the impact of exogenous non-economic factors on UK transport oil demand,"
Elsevier, vol. 38(3), pages 1559-1565, March.
- David C Broadstock & Lester C Hunt, 2009. "Quantifying the Impact of Exogenous Non-Economic Factors on UK Transport Oil Demand," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 123, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
- Tovar, Miguel A., 2011. "An integral evaluation of dieselisation policies for households' cars," Energy Policy, Elsevier, vol. 39(9), pages 5228-5242, September.
- Liddle, Brantley, 2012. "The Systemic, Long-run Relation among Gasoline Demand, Gasoline Price, Income, and Vehicle Ownership in OECD Countries: Evidence from Panel Cointegration and Causality Modeling," MPRA Paper 52081, University Library of Munich, Germany.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.