A Dynamic Model for Road Gasoline and Diesel Consumption: An Application for Spanish Regions
This paper analyzes the factors explaining the aggregate fuel consumption for road transport in Spain in a dynamic panel data framework. Three features on this study are the use of a balanced panel using regional data, the distinction between gasoline and diesel and the specification of a dynamic panel data (DPD) model and estimate it by system Generalized Methods of Moments (GMM). Our results show that most explanatory variables are significant in explaining the evolution of gasoline consumption, while diesel consumption is found to be independent of most of these factors. The differences between the markets of the gasoline (most for passenger transport use) and the diesel (passenger and freight transport are important) could explain the results for the diesel model. Moreover, the intensive dieselization process that has taken place in Spain over the last decade, which has resulted in diesel consumption being exposed to factors - i.e., regulatory - which are not of a strictly economic nature. This finding highlights the need to consider different explanatory variables and models for gasoline and diesel consumption, and to go further in the research. Finally, we find that traditional estimation procedures, such as fixed and random effect estimators, produce important differences with respect to system-GMM, which may even change policy recommendations.
Volume (Year): 2 (2012)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.econjournals.com |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard Schmalensee & Thomas M. Stoker & Ruth A. Judson, 1998. "World Carbon Dioxide Emissions: 1950-2050," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 15-27, February.
- Ruth A. Judson & Richard Schmalensee & Thomas M. Stoker, 1999. "Economic Development and the Structure of the Demand for Commercial Energy," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 29-57.
- Douglas Holtz-Eakin & Thomas M. Selden, 1992.
"Stoking the Fires? Co2 Emissions and Economic Growth,"
NBER Working Papers
4248, National Bureau of Economic Research, Inc.
- Holtz-Eakin, Douglas & Selden, Thomas M., 1995. "Stoking the fires? CO2 emissions and economic growth," Journal of Public Economics, Elsevier, vol. 57(1), pages 85-101, May.
- Xavier Labandeira Villot & Ángel López Nicolás, 2002.
"La imposición de los carburantes de automoción en España: algunas observaciones teóricas y empíricas,"
Economics Working Papers
609, Department of Economics and Business, Universitat Pompeu Fabra.
- Xavier Labandeira Villot & Ángel López Nicolás, 2002. "La imposición de los carburantes de automoción en España: Algunas observaciones teóricas y empíricas," Hacienda Pública Española, IEF, vol. 160(1), pages 177-210, march.
- Xavier Labandeira Villot & Ángel López Nicolás, 2002. "La imposición de los carburantes de automoción en España: algunas observaciones teóricas y empíricas," Working Papers, Research Center on Health and Economics 609, Department of Economics and Business, Universitat Pompeu Fabra.
- Ross Levine & Norman Loayza & Thorsten Beck, 2002.
"Financial Intermediation and Growth: Causality and Causes,"
Central Banking, Analysis, and Economic Policies Book Series,
in: Leonardo Hernández & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.), Banking, Financial Integration, and International Crises, edition 1, volume 3, chapter 2, pages 031-084
Central Bank of Chile.
- Levine, Ross & Loayza, Norman & Beck, Thorsten, 2000. "Financial intermediation and growth: Causality and causes," Journal of Monetary Economics, Elsevier, vol. 46(1), pages 31-77, August.
- Thorsten Beck & Ross Levine & Norman Loayza, 1999. "Financial Intermediation and Growth: Causality and Causes," Working Papers Central Bank of Chile 56, Central Bank of Chile.
- Levine, Ross & Loayza, Norman & Beck, Thorsten, 1999. "Financial intermediation and growth : Causality and causes," Policy Research Working Paper Series 2059, The World Bank.
- 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.
- Dahl, Carol & Sterner, Thomas, 1991. "Analysing gasoline demand elasticities: a survey," Energy Economics, Elsevier, vol. 13(3), pages 203-210, July.
- Banfi, Silvia & Filippini, Massimo & Hunt, Lester C., 2005. "Fuel tourism in border regions: The case of Switzerland," Energy Economics, Elsevier, vol. 27(5), pages 689-707, September.
- Kayser, Hilke A., 2000. "Gasoline demand and car choice: estimating gasoline demand using household information," Energy Economics, Elsevier, vol. 22(3), pages 331-348, June.
- Puller, Steven L. & Greening, Lorna A., 1999. "Household adjustment to gasoline price change: an analysis using 9 years of US survey data," Energy Economics, Elsevier, vol. 21(1), pages 37-52, February.
- 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.
- Tapio, Petri & Banister, David & Luukkanen, Jyrki & Vehmas, Jarmo & Willamo, Risto, 2007. "Energy and transport in comparison: Immaterialisation, dematerialisation and decarbonisation in the EU15 between 1970 and 2000," Energy Policy, Elsevier, vol. 35(1), pages 433-451, January.
- Romero-Jordán, Desiderio & del Río, Pablo & Jorge-García, Marta & Burguillo, Mercedes, 2010. "Price and income elasticities of demand for passenger transport fuels in Spain. Implications for public policies," Energy Policy, Elsevier, vol. 38(8), pages 3898-3909, August.
- repec:ner:tilbur:urn:nbn:nl:ui:12-3125519 is not listed on IDEAS
- Richard Blundell & Steve Bond, 1995.
"Initial conditions and moment restrictions in dynamic panel data models,"
IFS Working Papers
W95/17, Institute for Fiscal Studies.
- Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Huang, Bwo-Nung & Hwang, M.J. & Yang, C.W., 2008. "Causal relationship between energy consumption and GDP growth revisited: A dynamic panel data approach," Ecological Economics, Elsevier, vol. 67(1), pages 41-54, August.
- M Arellano & O Bover, 1990.
"Another Look at the Instrumental Variable Estimation of Error-Components Models,"
CEP Discussion Papers
dp0007, Centre for Economic Performance, LSE.
- Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
- Bentzen, Jan, 1994. "An empirical analysis of gasoline demand in Denmark using cointegration techniques," Energy Economics, Elsevier, vol. 16(2), pages 139-143, April.
- Halkos, George E., 2003. "Environmental Kuznets Curve for sulfur: evidence using GMM estimation and random coefficient panel data models," Environment and Development Economics, Cambridge University Press, vol. 8(04), pages 581-601, October.
- Nagy Eltony, M., 1996. "Demand for gasoline in the GCC: an application of pooling and testing procedures," Energy Economics, Elsevier, vol. 18(3), pages 203-209, July.
- Mazzarino, Marco, 2000. "The economics of the greenhouse effect: evaluating the climate change impact due to the transport sector in Italy," Energy Policy, Elsevier, vol. 28(13), pages 957-966, November.
- Alves, Denisard C. O. & De Losso da Silveira Bueno, Rodrigo, 2003. "Short-run, long-run and cross elasticities of gasoline demand in Brazil," Energy Economics, Elsevier, vol. 25(2), pages 191-199, March.
- Baltagi, Badi H. & Griffin, James M., 1983. "Gasoline demand in the OECD : An application of pooling and testing procedures," European Economic Review, Elsevier, vol. 22(2), pages 117-137, July.
- Shioji, Etsuro, 2001. " Public Capital and Economic Growth: A Convergence Approach," Journal of Economic Growth, Springer, vol. 6(3), pages 205-27, September.
- Marrero, Gustavo A., 2010. "Greenhouse gases emissions, growth and the energy mix in Europe," Energy Economics, Elsevier, vol. 32(6), pages 1356-1363, November.
- Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January.
- Baltagi, Badi H. & Griffin, James M., 1997. "Pooled estimators vs. their heterogeneous counterparts in the context of dynamic demand for gasoline," Journal of Econometrics, Elsevier, vol. 77(2), pages 303-327, April.
- Gilbert E. Metcalf, 2008. "An Empirical Analysis of Energy Intensity and Its Determinants at the State Level," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-26.
- Zervas, Efthimios, 2006. "CO2 benefit from the increasing percentage of diesel passenger cars. Case of Ireland," Energy Policy, Elsevier, vol. 34(17), pages 2848-2857, November.
- Richard Blundell & Steve Bond & Frank Windmeijer, 2000. "Estimation in dynamic panel data models: improving on the performance of the standard GMM estimator," IFS Working Papers W00/12, Institute for Fiscal Studies.
- Belhaj, Mohammed, 2002. "Vehicle and fuel demand in Morocco," Energy Policy, Elsevier, vol. 30(13), pages 1163-1171, October.
- Sterner, Thomas, 2007. "Fuel taxes: An important instrument for climate policy," Energy Policy, Elsevier, vol. 35(6), pages 3194-3202, June.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- González, Rosa Marina & Marrero, Gustavo A., 2012. "Induced road traffic in Spanish regions: A dynamic panel data model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 435-445.
- Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
- 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.
When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2012-04-1. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilhan Ozturk)
If references are entirely missing, you can add them using this form.