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The demand for car fuel efficiency: some evidence for the UK

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  • Robert Witt

Abstract

This paper uses the Atkinson-Halvorsen (1984) hedonic method to estimate the effect of petrol price changes on fuel efficiency and other attributes using data for new cars in the UK. In contrast to Atkinson and Halvorsen, the estimated long-run petrol price elasticity of demand for fuel efficiency is very small. The empirical results imply that the adjustment process within the new car market permits little substitution for more fuel efficient cars in response to petrol price changes.

Suggested Citation

  • Robert Witt, 1997. "The demand for car fuel efficiency: some evidence for the UK," Applied Economics, Taylor & Francis Journals, vol. 29(9), pages 1249-1254.
    • Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1249-1254
    DOI: 10.1080/00036849700000015
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    References listed on IDEAS

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    1. Ohta, Makoto & Griliches, Zvi, 1986. "Automobile Prices and Quality: Did the Gasoline Price Increases Change Consumer Tastes in the U.S.?," Journal of Business & Economic Statistics, American Statistical Association, vol. 4(2), pages 187-198, April.
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    4. Virley, Simon, 1993. "The effect of fuel price increases on road transport CO2 emissions," Transport Policy, Elsevier, vol. 1(1), pages 43-48, October.
    5. Sorrell, Steve, 1992. "Fuel efficiency in the UK vehicle stock," Energy Policy, Elsevier, vol. 20(8), pages 766-780, August.
    6. Makoto Ohta, 1983. "Automobile Prices and Quality: Did the Gasoline Price Increase Change Consumer Tastes in the U.S.?," NBER Working Papers 1211, National Bureau of Economic Research, Inc.
    7. Atkinson, Scott E & Halvorsen, Robert, 1984. "A New Hedonic Technique for Estimating Attribute Demand: An Application to the Demand for Automobile Fuel Efficiency," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 417-426, August.
    8. Dahl, Carol & Sterner, Thomas, 1991. "Analysing gasoline demand elasticities: a survey," Energy Economics, Elsevier, vol. 13(3), pages 203-210, July.
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    Cited by:

    1. Bonilla, David, 2009. "Fuel demand on UK roads and dieselisation of fuel economy," Energy Policy, Elsevier, vol. 37(10), pages 3769-3778, October.
    2. Giuliano Rolle, 2022. "Between and within vehicle models hedonic analyses of environmental attributes: the case of the Italian used-car market," SEEDS Working Papers 0822, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Aug 2022.
    3. Weber, Sylvain, 2019. "Consumers' preferences on the Swiss car market: A revealed preference approach," Transport Policy, Elsevier, vol. 75(C), pages 109-118.
    4. Anna Alberini, Markus Bareit and Massimo Filippini, 2016. "What is the Effect of Fuel Efficiency Information on Car Prices? Evidence from Switzerland," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    5. Wadud, Zia, 2014. "New vehicle fuel economy in the UK: Impact of the recession and recent policies," Energy Policy, Elsevier, vol. 74(C), pages 215-223.
    6. Anna Alberini & Markus Bareit & Massimo Filippini, 2014. "Does the Swiss Car Market Reward Fuel Efficient Cars? Evidence from Hedonic Pricing Regressions, a Regression Discontinuity Design, and Matching," Working Papers 2014.16, Fondazione Eni Enrico Mattei.
    7. Anna Alberini & Massimo Filippini & Markus Bareit, 2014. "Does the Swiss Car Market Reward Fuel Efficient Cars? Evidence from Hedonic Pricing Regressions, Matching and a Regression Discontinuity Design," CER-ETH Economics working paper series 14/190, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.

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