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Gasoline Demand in Developing Asian Countries


  • Robert McRae


This paper presents econometric estimates of motor gasoline demand in eleven developing countries of Asia. The price and GDP per capita elasticities are estimated for each country separately, and for several pooled combinations of the countries. The estimated elasticities for the Asian countries are compared with those of the OECD countries. Generally, one finds that the OECD countries have GDP elasticities that are smaller, and price elasticities that are larger (in absolute value). The price elasticities for the low-income Asian countries are more inelastic than for the middle-income Asian countries, and the GDP elasticities are generally more elastic.

Suggested Citation

  • Robert McRae, 1994. "Gasoline Demand in Developing Asian Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 143-156.
  • Handle: RePEc:aen:journl:1994v15-01-a09

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    References listed on IDEAS

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    Cited by:

    1. Khalid Kisswani, 2014. "OPEC and political considerations when deciding on oil extraction," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 38(1), pages 96-118, January.
    2. Martijn Brons & Peter Nijkamp & Eric Pels & Piet Rietveld, 2006. "A Meta-analysis of the Price Elasticity of Gasoline Demand. A System of Equations Approach," Tinbergen Institute Discussion Papers 06-106/3, Tinbergen Institute.
    3. Chandrasiri, Sunil, 2006. "Demand for road-fuel in a small developing economy: The case of Sri Lanka," Energy Policy, Elsevier, vol. 34(14), pages 1833-1840, September.
    4. Currie, Graham & Rose, John, 2008. "Growing patronage - Challenges and what has been found to work," Research in Transportation Economics, Elsevier, vol. 22(1), pages 5-11, January.
    5. Jiang, Zhujun & Lin, Boqiang, 2012. "China's energy demand and its characteristics in the industrialization and urbanization process," Energy Policy, Elsevier, vol. 49(C), pages 608-615.
    6. Li, Jun, 2011. "Decoupling urban transport from GHG emissions in Indian cities--A critical review and perspectives," Energy Policy, Elsevier, vol. 39(6), pages 3503-3514, June.
    7. Polemis, Michael L., 2006. "Empirical assessment of the determinants of road energy demand in Greece," Energy Economics, Elsevier, vol. 28(3), pages 385-403, May.
    8. Sentenac-Chemin, Elodie, 2012. "Is the price effect on fuel consumption symmetric? Some evidence from an empirical study," Energy Policy, Elsevier, vol. 41(C), pages 59-65.
    9. Nasser Al Dossary & Carol A. Dahl, 2009. "Is Global Gasoline Demand Still as Responsive to Price?," Working Papers 2009-01, Colorado School of Mines, Division of Economics and Business.
    10. Brons, Martijn & Nijkamp, Peter & Pels, Eric & Rietveld, Piet, 2008. "A meta-analysis of the price elasticity of gasoline demand. A SUR approach," Energy Economics, Elsevier, vol. 30(5), pages 2105-2122, September.
    11. Arzaghi, Mohammad & Squalli, Jay, 2015. "How price inelastic is demand for gasoline in fuel-subsidizing economies?," Energy Economics, Elsevier, vol. 50(C), pages 117-124.
    12. Lin, C.-Y. Cynthia & Zeng, Jieyin (Jean), 2013. "The elasticity of demand for gasoline in China," Energy Policy, Elsevier, vol. 59(C), pages 189-197.
    13. 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.

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    JEL classification:

    • F0 - International Economics - - General


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