IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Gasoline and Diesel Consumption for Road Transport in Spain: a Dynamic Panel Data Approach

  • Rosa M. González-Marrero
  • Rosa M. Lorenzo-Alegría
  • Gustavo A. Marrero

Using a panel data set for Spanish regions between 1998 and 2006, we study the factors explaining per capita fuel consumption for road transport at the macroeconomic level. The contributions of the article are the following. First, we specify a dynamic panel data (DPD) model for gasoline and diesel consumption. Second, we properly apply estimation techniques based on the system Generalized Methods of Moments (GMM) procedure of Arellano and Bover (1995). We find that more traditional estimation procedures (pooling-OLS, the Within-Group or the first difference GMM), which might generate bias estimate in a DPD framework, produce important differences that may even change policy recommendations. Finally, we find important differences between the results for the gasoline and the diesel model. While the estimated equation correctly fits the gasoline consumption behavior, results emphasizes the need to specify a different model for aggregate diesel consumption, which must include aditional determinants than those traditionally used in fuel consumption models.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.fedea.net/documentos/pubs/ee/2011/04-2011.pdf
Download Restriction: no

Paper provided by FEDEA in its series Economic Reports with number 04-2011.

as
in new window

Length:
Date of creation: May 2011
Date of revision:
Handle: RePEc:fda:fdacee:04-2011
Contact details of provider: Web page: http://www.fedea.net

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.:

as in new window
  1. Francisco Alvarez & Gustavo A. Marrero & Luis A. Puch, . "Air pollution and the macroeconomy across European countries," Working Papers 2005-10, FEDEA.
  2. Baltagi, Badi H & Raj, Baldev, 1992. "A Survey of Recent Theoretical Developments in the Econometrics of Panel Data," Empirical Economics, Springer, vol. 17(1), pages 85-109.
  3. Angel de la Fuente & Vicente Salas Fumás, . "On the sources of convergence: A close look at the Spanish regions," Studies on the Spanish Economy 01, FEDEA.
  4. 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.
  5. Shioji, Etsuro, 2001. " Public Capital and Economic Growth: A Convergence Approach," Journal of Economic Growth, Springer, vol. 6(3), pages 205-27, September.
  6. Steve Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  7. 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.
  8. Marrero, Gustavo A., 2010. "Greenhouse gases emissions, growth and the energy mix in Europe," Energy Economics, Elsevier, vol. 32(6), pages 1356-1363, November.
  9. 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.
  10. Badi H. Baltagi & James M. Griffin, 1984. "U.S. Gasoline Demand: What Next?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 129-140.
  11. 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.
  12. Gustavo A. Marrero, 2009. "Greenhouse gases emissions, growth and the energy mix in Europe: a dynamic panel data approach," Working Papers 2009-16, FEDEA.
  13. 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.
  14. Jose Labeaga & Angel Lopez, 1997. "A study of petrol consumption using Spanish panel data," Applied Economics, Taylor & Francis Journals, vol. 29(6), pages 795-802.
  15. Schipper, Lee & Figueroa, Maria J. & Price, Lynn & Espey, Molly, 1993. "Mind the Gap: The Vicious Circle of Measuring Automobile Fuel Use," University of California Transportation Center, Working Papers qt06n8g4x9, University of California Transportation Center.
  16. Badi H. Baltagi & Georges Bresson & James M. Griffin & Alain Pirotte, 2003. "Homogeneous, heterogeneous or shrinkage estimators? Some empirical evidence from French regional gasoline consumption," Empirical Economics, Springer, vol. 28(4), pages 795-811, November.
  17. Belhaj, Mohammed, 2002. "Vehicle and fuel demand in Morocco," Energy Policy, Elsevier, vol. 30(13), pages 1163-1171, October.
  18. 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.
  19. Nicol, C. J., 2003. "Elasticities of demand for gasoline in Canada and the United States," Energy Economics, Elsevier, vol. 25(2), pages 201-214, March.
  20. Dahl, Carol & Sterner, Thomas, 1991. "Analysing gasoline demand elasticities: a survey," Energy Economics, Elsevier, vol. 13(3), pages 203-210, July.
  21. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
  22. repec:ner:tilbur:urn:nbn:nl:ui:12-3125519 is not listed on IDEAS
  23. 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.
  24. Gang Liu, 2004. "Estimating Energy Demand Elasticities for OECD Countries. A Dynamic Panel Data Approach," Discussion Papers 373, Research Department of Statistics Norway.
  25. 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.
  26. 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.
  27. 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.
  28. Bentzen, Jan, 1994. "An empirical analysis of gasoline demand in Denmark using cointegration techniques," Energy Economics, Elsevier, vol. 16(2), pages 139-143, April.
  29. Sterner, Thomas, 2007. "Fuel taxes: An important instrument for climate policy," Energy Policy, Elsevier, vol. 35(6), pages 3194-3202, June.
  30. 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.
  31. Ramanathan, R., 1999. "Short- and long-run elasticities of gasoline demand in India: An empirical analysis using cointegration techniques," Energy Economics, Elsevier, vol. 21(4), pages 321-330, August.
  32. Silvia Banfi & Massimo Filippini & Lester C. Hunt, 2003. "Fuel tourism in border regions," CEPE Working paper series 03-23, CEPE Center for Energy Policy and Economics, ETH Zurich.
  33. Bond, Stephen Roy & Hoeffler, Anke & Temple, Jonathan, 2001. "GMM Estimation of Empirical Growth Models," CEPR Discussion Papers 3048, C.E.P.R. Discussion Papers.
  34. 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.
  35. 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.
  36. Robert Cervero & Mark Hansen, 2002. "Induced Travel Demand and Induced Road Investment: A Simultaneous Equation Analysis," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 36(3), pages 469-490, September.
  37. 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.
  38. 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.
  39. Doran, Howard E. & Schmidt, Peter, 2006. "GMM estimators with improved finite sample properties using principal components of the weighting matrix, with an application to the dynamic panel data model," Journal of Econometrics, Elsevier, vol. 133(1), pages 387-409, July.
  40. Levine, Ross & Loayza, Norman & Beck, Thorsten, 1999. "Financial intermediation and growth : Causality and causes," Policy Research Working Paper Series 2059, The World Bank.
  41. 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.
  42. 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.
  43. 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.
  44. 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.
  45. 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.
  46. 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.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:fda:fdacee:04-2011. 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: (Carmen Arias)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.