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Gasoline, diesel fuel and jet fuel demand in South Africa

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  • Willem H. Boshoff

Abstract

In recent years, the price and income elasticity of fuel demand in South Africa has featured prominently in energy and competition policy proceedings and in major corporate planning projects. The paper investigates the price and income elasticity of gasoline (petrol), diesel and jet fuel demand in South Africa. Such a study is essential, given the significant structural change in fuel consumption behaviour over the 1990s and the paper builds compare the results of econometric models based on a longer sample period covering 1982Q1 to 2010Q4 and a shorter sample period covering 1998Q1 to 2010Q4. The econometric model is based on an autoregressive distributed lag (ARDL) model, reduced to a parsimonious specification using an automated reduction algorithm.

Suggested Citation

  • Willem H. Boshoff, 2011. "Gasoline, diesel fuel and jet fuel demand in South Africa," Working Papers 226, Economic Research Southern Africa.
  • Handle: RePEc:rza:wpaper:226
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    File URL: http://www.econrsa.org/node/249
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    References listed on IDEAS

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    4. Akinboade, Oludele A. & Ziramba, Emmanuel & Kumo, Wolassa L., 2008. "The demand for gasoline in South Africa: An empirical analysis using co-integration techniques," Energy Economics, Elsevier, vol. 30(6), pages 3222-3229, November.
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    Cited by:

    1. Mohcine Bakhat & José M. Labeaga & Xavier Labandeira & Xiral Lñpez, 2013. "Economic Crisis and Elasticities of Car Fuels: Evidence for Spain," Working Papers fa15-2013, Economics for Energy.

    More about this item

    Keywords

    gasoline petrol diesel jet fuel price elasticity income elasticity South Africa bounds test;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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