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Gasoline Prices And Road Fatalities: International Evidence

Author

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  • Paul J. Burke
  • Shuhei Nishitateno

Abstract

This study utilizes data for 144 countries from 1991 to 2010 to present the first international estimates of the gasoline price elasticity of road fatalities. We instrument each country's gasoline price with that country's oil reserves and the yearly international crude oil price to address potential endogeneity concerns. Our findings suggest that the average reduction in road fatalities resulting from a 10% increase in the gasoline pump price is in the order of 3%–6%. Around 35,000 road deaths per year could be avoided by the removal of global fuel subsidies. ( JEL R41, H23, O18, Q43)

Suggested Citation

  • Paul J. Burke & Shuhei Nishitateno, 2015. "Gasoline Prices And Road Fatalities: International Evidence," Economic Inquiry, Western Economic Association International, vol. 53(3), pages 1437-1450, July.
  • Handle: RePEc:bla:ecinqu:v:53:y:2015:i:3:p:1437-1450
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    File URL: http://hdl.handle.net/10.1111/ecin.2015.53.issue-3
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    References listed on IDEAS

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    1. Nicholas E. Burger & Daniel T. Kaffine, 2009. "Gas Prices, Traffic, and Freeway Speeds in Los Angeles," The Review of Economics and Statistics, MIT Press, vol. 91(3), pages 652-657, August.
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    5. Baltagi, Badi H & Griffin, James M, 1984. "Short and Long Run Effects in Pooled Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(3), pages 631-645, October.
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    11. A. Pirotte, 2003. "Convergence of the static estimation toward the long-run effects of dynamic panel data models: a labour demand illustration," Applied Economics Letters, Taylor & Francis Journals, vol. 10(13), pages 843-847.
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    13. Stern, David I., 2010. "Between estimates of the emissions-income elasticity," Ecological Economics, Elsevier, vol. 69(11), pages 2173-2182, September.
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    16. World Bank, 2013. "World Development Indicators 2013," World Bank Publications, The World Bank, number 13191.
    17. Burke, Paul J. & Nishitateno, Shuhei, 2013. "Gasoline prices, gasoline consumption, and new-vehicle fuel economy: Evidence for a large sample of countries," Energy Economics, Elsevier, vol. 36(C), pages 363-370.
    18. Noland, Robert B., 2005. "Fuel economy and traffic fatalities: multivariate analysis of international data," Energy Policy, Elsevier, vol. 33(17), pages 2183-2190, November.
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    Citations

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    Cited by:

    1. Yi-Xuan Gao & Hua Liao & Paul J. Burke & Yi-Ming Wei, 2015. "Road transport energy consumption in the G7 and BRICS: 1973-2010," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 38(4/5/6), pages 342-356.
    2. Burke, Paul J. & Yang, Hewen, 2016. "The price and income elasticities of natural gas demand: International evidence," Energy Economics, Elsevier, vol. 59(C), pages 466-474.
    3. Edwards, Ryan B., 2016. "Mining away the Preston curve," World Development, Elsevier, vol. 78(C), pages 22-36.
    4. Paul J. Burke, 2014. "Green Pricing in the Asia Pacific: An Idea Whose Time Has Come?," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 1(3), pages 561-575, September.
    5. Paul J. Burke & Ashani Abayasekara, 2017. "The price elasticity of electricity demand in the United States: A three-dimensional analysis," CAMA Working Papers 2017-50, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

    More about this item

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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