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The Role of Regulation, Fiscal Incentives and Changes in Tastes in the Diffusion of Unleaded Petrol

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  • Stoneman, Paul
  • Battisti, Giuliana

Abstract

This paper analyses the diffusion of unleaded petrol in the UK. Changes in the market share of unleaded fuel are the result of changes in the composition of the car stock and changes in the choice of fuel given the car stock. We find that fuel type choices have been mainly driven by changes in tastes and learning as opposed to changes in relative prices induced by fiscal incentives. However car stock composition effects dominate the diffusion process and we find that through this route regulatory changes have made major contributions to changes in the market share of unleaded fuel. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Stoneman, Paul & Battisti, Giuliana, 2000. "The Role of Regulation, Fiscal Incentives and Changes in Tastes in the Diffusion of Unleaded Petrol," Oxford Economic Papers, Oxford University Press, vol. 52(2), pages 326-356, April.
    • Handle: RePEc:oup:oxecpp:v:52:y:2000:i:2:p:326-56
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    Cited by:

    1. Stoneman, Paul, 2011. "Soft Innovation: Economics, Product Aesthetics, and the Creative Industries," OUP Catalogue, Oxford University Press, number 9780199697021.
    2. Scott G. Dacko & Paul Stoneman & Zafeira Kastrinaki, 2015. "New product introduction: follower firm timing behaviour," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(8), pages 829-853, November.
    3. Stoneman, Paul & Battisti, Giuliana, 2010. "The Diffusion of New Technology," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 733-760, Elsevier.
    4. Ariel Casarin, 2014. "Regulated price reforms and unregulated substitutes: the case of residential piped gas in Argentina," Journal of Regulatory Economics, Springer, vol. 45(1), pages 34-56, February.
    5. Bell, Jennifer & Battisti, Giuliana & Guin, Benjamin, 2023. "The greening of lending: Evidence from banks’ pricing of energy efficiency before climate-related regulation," Economics Letters, Elsevier, vol. 230(C).
    6. Adrián Saldarriaga-Isaza, C. & Vergara, Carlos, 2009. "Who switches to hybrids? A study of a fuel conversion program in Colombia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(5), pages 572-579, June.
    7. Stoneman, Paul & Battisti, Giuliana, 1998. "Fiscal incentives to consumer innovation: the use of unleaded petrol in Europe," Research Policy, Elsevier, vol. 27(2), pages 187-213, June.
    8. Burlinson, Andrew & Giulietti, Monica & Battisti, Giuliana, 2018. "Technology adoption, consumer inattention and heuristic decision-making: Evidence from a UK district heating scheme," Research Policy, Elsevier, vol. 47(10), pages 1873-1886.
    9. Strong, Derek Ryan, 2017. "The Early Diffusion of Smart Meters in the US Electric Power Industry," Thesis Commons 7zprk, Center for Open Science.

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