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Estimating the effect of urban density on fuel demand

  • Karathodorou, Niovi
  • Graham, Daniel J.
  • Noland, Robert B.

Much of the empirical literature on fuel demand presents estimates derived from national data which do not permit any explicit consideration of the spatial structure of the economy. Intuitively we would expect the degree of spatial concentration of activities to have a strong link with transport fuel consumption. The present paper addresses this theme by estimating a fuel demand model for urban areas to provide a direct estimate of the elasticity of demand with respect to urban density. Fuel demand per capita is decomposed into car stock per capita, fuel consumption per kilometre and annual distance driven per car per year. Urban density is found to affect fuel consumption, mostly through variations in the car stock and in the distances travelled, rather than through fuel consumption per kilometre.

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Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 32 (2010)
Issue (Month): 1 (January)
Pages: 86-92

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Handle: RePEc:eee:eneeco:v:32:y:2010:i:1:p:86-92
Contact details of provider: Web page: http://www.elsevier.com/locate/eneco

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  1. Espey, Molly, 1998. "Gasoline demand revisited: an international meta-analysis of elasticities," Energy Economics, Elsevier, vol. 20(3), pages 273-295, June.
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  6. Espey, Molly, 1996. "Watching the fuel gauge: An international model of automobile fuel economy," Energy Economics, Elsevier, vol. 18(1-2), pages 93-106, April.
  7. Archibald, Robert & Gillingham, Robert, 1980. "An Analysis of the Short-Run Consumer Demand for Gasoline Using Household Survey Data," The Review of Economics and Statistics, MIT Press, vol. 62(4), pages 622-28, November.
  8. Gyo-Eon Shim & Sung-Mo Rhee & Kun-Hyuck Ahn & Sung-Bong Chung, 2006. "The relationship between the characteristics of transportation energy consumption and urban form," The Annals of Regional Science, Springer, vol. 40(2), pages 351-367, June.
  9. 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.
  10. Drollas, Leonidas P., 1984. "The demand for gasoline : Further evidence," Energy Economics, Elsevier, vol. 6(1), pages 71-82, January.
  11. Mindali, Orit & Raveh, Adi & Salomon, Ilan, 2004. "Urban density and energy consumption: a new look at old statistics," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(2), pages 143-162, February.
  12. van de Coevering, Paul & Schwanen, Tim, 2006. "Re-evaluating the impact of urban form on travel patternsin Europe and North-America," Transport Policy, Elsevier, vol. 13(3), pages 229-239, May.
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