Title: Gasoline demand : a comparison of models /
Authors: Franzén, Mikael.
Publisher: Göteborgs universitet, Nationalekonomiska institutionen,
Year: 1994
Subjects: Gasoline supply European Economic Community countries.; Gasoline supply Sweden.
Abstract: "This thesis analyses the short and long run gasoline demand elasticities in the OECD and for one country, [Sweden] it incorporates a more detailed analysis of the development of the vehicle stock. This thesis estimates and compares all the major traditional models using cross-section, time-series, and pooled methods on the same data set to analyze aggregate yearly gasoline consumption ... Also incorporates newer methods based on cointegration and Johansen VAR techniques. The focus of the study is then shifted towards the analysis and incorporation of the car stock in an attempt to build a vintage model to further our understanding of the adaptation process. Finally gasoline demand elasticities are used to explore the environmental effect (carbon emissions) of different gasoline taxation strategies for the OECD. The study shows that gasoline demand has a rather complex adaptation process and that this complexity is probably due to the inertia of the car stock ... As for the empirical conclusion it is clear that gasoline demand is quite sensitive to price particularly in the long run and that fuel taxes do have an important role to play in environmental policy."