Fuel Consumption, Economic Determinants and Policy Implications for Road Transport in Spain
Road transport is one of the most polluting sectors in Spain, generating almost one fourth of total CO2 emissions. Moreover, the consumption of fuel is the main source of these emissions. In this paper we estimate several fixed-effect models to study the economic factors that explain the short-term variations in fuel usage per vehicle, distinguishing between gasoline and diesel, using data from the 17 regions in Spain between 2000 and 2006. Price variations in fuel, modernization of vehicles, improved infrastructures and the dieselization process have proved ineffective in reducing energy usage per-vehicle in Spain, which would indicate the need to implement several measures simultaneously to control the increasing use of road transport.
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