Demand for gasoline is more price-inelastic than commonly thought

Energy Economics

Volumn 34, Issue 1, 2012, Pages 201-207

  Havranek, Tomas ^a,b   Irsova, Zuzana ^b   Janda, Karel ^b,c,d,e  

^a CZECH NATIONAL BANK   (Czech Republic)

^b CHARLES UNIVERSITY   (Czech Republic)

^c UNIVERSITY OF CALIFORNIA   (United States)

^d UNIVERSITY OF ECONOMICS   (Czech Republic)

^e CERGE EI   (Czech Republic)

Author keywords

Gasoline demand; Meta analysis; Price elasticity; Publication selection bias

Indexed keywords

ENERGY ECONOMICS; GASOLINE DEMAND; META-ANALYSIS; PRICE ELASTICITY; PUBLICATION SELECTION BIAS; SELECTION BIAS; STATISTICAL RELATIONSHIP;

COSTS; ECONOMICS; ESTIMATION; GASOLINE; PUBLISHING;

ELASTICITY;

ENERGY MARKET; META-ANALYSIS; PETROLEUM; PRICE DYNAMICS; QUANTITATIVE ANALYSIS; REGRESSION ANALYSIS;

EID: 84856062774     PISSN: 01409883     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.eneco.2011.09.003     Document Type: Article

References (68)

1. Abdel-khalek G. Income and price elasticities of energy consumption in Egypt: a time-series analysis. Energy Econ. 1988, 10(1):47-58.
2. Abreu M., de Groot H.L.F., Florax R.J.G.M. A meta-analysis of β-convergence: the legendary 2%. J. Econ. Surv. 2005, 19(3):389-420.
3. Akinboade O.A., Ziramba E., Kumo W.L. The demand for gasoline in South Africa: an empirical analysis using co-integration techniques. Energy Econ. 2008, 30(6):3222-3229.
4. Alves D.C.O., Bueno R.D.L.d.S. Short-run, long-run and cross elasticities of gasoline demand in Brazil. Energy Econ. 2003, 25(2):191-199.
5. Archibald R., Gillingham R. An analysis of the short-run consumer demand for gasoline using household survey data. Rev. Econ. Stat. 1980, 62(4):622-628.
6. Archibald R., Gillingham R. The distributional impact of alternative gasoline conservation policies. Bell J. Econ. 1981, 12(2):426-444.
7. Ashenfelter O., Greenstone M. Estimating the value of a statistical life: the importance of omitted variables and publication bias. Am. Econ. Rev. 2004, 94(2):454-460.
8. Ashenfelter O., Harmon C., Oosterbeek H. A review of estimates of the schooling/earnings relationship, with tests for publication bias. Labour Econ. 1999, 6(4):453-470.
9. Baltagi B.H., Griffin J.M. Gasoline demand in the OECD: an application of pooling and testing procedures. Eur. Econ. Rev. 1983, 22(2):117-137.
10. Baltagi B.H., Griffin J.M. Pooled estimators vs. their heterogeneous counterparts in the context of dynamic demand for gasoline. J. Econ. 1997, 77(2):303-327.
11. Bentzen J. An empirical analysis of gasoline demand in Denmark using cointegration techniques. Energy Econ. 1994, 16(2):139-143.
12. Berndt E.R., Botero G. Energy demand in the transportation sector of Mexico. J. Dev. Econ. 1985, 17(3):219-238.
13. Berzeg K. Demand for motor gasoline: a generalized error components model. South. Econ. J. 1982, 49:359-373.
14. Brons M., Nijkamp P., Pels E., Rietveld P. A meta-analysis of the price elasticity of gasoline demand. A SUR approach. Energy Econ. 2008, 30(5):2105-2122.
15. Card D., Krueger A.B. Time-series minimum-wage studies: a meta-analysis. Am. Econ. Rev. 1995, 85(2):238-243.
16. Card D., Kluve J., Weber A. Active labour market policy evaluations: a meta-analysis. Econ. J. 2010, 120(548):F452-F477.
17. Crôtte A., Noland R.B., Graham D.J. An analysis of gasoline demand elasticities at the national and local levels in Mexico. Energy Policy 2010, 38(8):4445-4456.
18. Dahl C.A. American energy consumption-extravagant or economical? A study of gasoline demand. Resour. Energy 1978, 1(4):359-373.
19. Dahl C.A. Consumer adjustment to a gasoline tax. Rev. Econ. Stat. 1979, 61(3):427-432.
20. Dahl C.A. Do gasoline demand elasticities vary?. Land Econ. 1982, 58(3):373-382.
21. Delong J.B., Lang K. Are all economic hypotheses false?. J. Pol. Econ. 1992, 100(6):1257-1272.
22. Doucouliagos H., Paldam M. The aid effectiveness literature: the sad results of 40 years of research. J. Econ. Surv. 2009, 23(3):433-461.
23. Doucouliagos H., Stanley T. Theory Competition and Selectivity: Are All Economic Facts Greatly Exaggerated?. Economics Series Working Paper 2008, 06. Deakin University.
24. Doucouliagos H., Stanley T.D. Publication selection bias in minimum-wage research? A meta-regression analysis. Br. J. Ind. Relat. 2009, 47(2):406-428.
25. Drollas L.P. The demand for gasoline: further evidence. Energy Econ. 1984, 6(1):71-82.
26. Eltony M. Transport gasoline demand in Canada. J. Transp. Econ. Policy 1993, 27:193-208.
27. Eltony M.N., Al-Mutairi N.H. Demand for gasoline in Kuwait: an empirical analysis using cointegration techniques. Energy Econ. 1995, 17(3):249-253.
28. Espey M. Gasoline demand revisited: an international meta-analysis of elasticities. Energy Econ. 1998, 20(3):273-295.
29. Gallini N.T. Demand for gasoline in Canada. Can. J. Econ. 1983, 16(2):299-324.
30. Goldfarb R.S. The economist-as-audience needs a methodology of plausible inference. J. Econ. Methodol. 1995, 2(2):201-222.
31. Havranek T. Rose effect and the Euro: is the magic gone?. Rev. World Econ. 2010, 146(2):241-261.
32. Havranek, T., Irsova, Z., forthcoming. Estimating Vertical Spillovers from FDI: Why Results Vary and What the True Effect Is. J. Int. Econ. DOI: doi:10.1016/j.jinteco.2011.07.004.
33. Horvathova E. Does environmental performance affect financial performance? A meta-analysis. Ecol. Econ. 2010, 70(1):52-59.
34. Houthakker H., Verleger P., Sheehan D. Dynamic demand analysis for gasoline and residential electricity. Am. J. Agric. Econ. 1974, 56:412-418.
35. Iwayemi A., Adenikinju A., Babatunde M.A. Estimating petroleum products demand elasticities in Nigeria: a multivariate cointegration approach. Energy Econ. 2010, 32(1):73-85.
36. Kennedy M. An economic model of the world oil market. Bell J. Econ. 1974, 5(2):540-577.
37. Kim Y.-D., Han H.-O., Moon Y.-S. The empirical effects of a gasoline tax on CO2 emissions reductions from transportation sector in Korea. Energy Policy 2011, 39(2):981-989.
38. Kraft J., Rodekohr M. Regional demand for gasoline: a temporal cross-section specification. J. Reg. Sci. 1978, 18:45-56.
39. Kwast M. A note on the structural stability of gasoline demand and the welfare economics of gasoline taxation. South. Econ. J. 1980, 46:1212-1220.
40. Lin A.-l., Botsas E.N., Monroe S.A. State gasoline consumption in the USA: an econometric analysis. Energy Econ. 1985, 7(1):29-36.
41. Manzan S., Zerom D. A semiparametric analysis of gasoline demand in the united states reexamining the impact of price. Econ. Rev. 2010, 29(4):439-468.
42. Mehta J.S., Narasimham G.V.L., Swamy P.A.V.B. Estimation of a dynamic demand function for gasoline with different schemes of parameter variation. J. Econ. 1978, 7(3):263-279.
43. Moreno S.G., Sutton A.J., Turner E.H., Abrams K.R., Cooper N.J., Palmer T.P., Ades A. Novel methods to deal with publication biases: secondary analysis of antidepressant trials in the FDA trial registry database and related journal publications. Br. Med. J. 2009, 339:494-498.
44. Nelson J., Kennedy P. The use (and abuse) of meta-analysis in environmental and natural resource economics: an assessment. Environ. Resour. Econ. 2009, 42(3):345-377.
45. Nicol C.J. Elasticities of demand for gasoline in Canada and the United States. Energy Econ. 2003, 25(2):201-214.
46. Pock M. Gasoline demand in Europe: new insights. Energy Econ. 2010, 32(1):54-62.
47. Ramanathan R. Short- and long-run elasticities of gasoline demand in India: an empirical analysis using cointegration techniques. Energy Econ. 1999, 21(4):321-330.
48. Ramsey J.B., Rasche R., Allen B.T. An analysis of the private and commercial demand for gasoline. Rev. Econ. Stat. 1975, 57(4):502-507.
49. Reza A., Spiro M. The demand for passenger car transport services and for gasoline. J. Transp. Econ. Policy 1979, 13:304-319.
50. Rosenthal R. The 'file drawer problem' and tolerance for null results. Psychol. Bull. 1979, 86:638-641.
51. Sipes K.N., Mendelsohn R. The effectiveness of gasoline taxation to manage air pollution. Ecol. Econ. 2001, 36(2):299-309.
52. Stanley T.D. Wheat from Chaff: meta-analysis as quantitative literature review. J. Econ. Perspect. 2001, 15(3):131-150.
53. Stanley T.D. Beyond publication bias. J. Econ. Surv. 2005, 19(3):309-345.
54. Stanley T.D. Meta-regression methods for detecting and estimating empirical effects in the presence of publication selection. Oxford Bull. Econ. Stat. 2008, 70(1):103-127.
55. Stanley T.D., Doucouliagos H. Identifying and Correcting Publication Selection Bias in the Efficiency-Wage Literature: Heckman Meta-Regression. Economics Series 2007/11 2007, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
56. Stanley T.D., Doucouliagos H. Picture this: a simple graph that reveals much ado about research. J. Econ. Surv. 2010, 24(1):170-191.
57. Stanley T.D., Doucouliagos H. Meta-Regression Approximations to Reduce Publication Selection Bias. Economics Series 2011/4 2011, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
58. Stanley T.D., Jarrell S.B. Meta-regression analysis: a quantitative method of literature surveys. J. Econ. Surv. 1989, 3(2):161-170.
59. Stanley T.D., Doucouliagos H., Jarrell S.B. Meta-regression analysis as the socio-economics of economics research. J. Socio-Econ. 2008, 37(1):276-292.
60. Sterner T. Gasoline demand in the OECD: choice of model and data set in pooled estimation. OPEC Rev. 1991, 91:91-101.
61. Storchmann K. Long-run gasoline demand for passenger cars: the role of income distribution. Energy Econ. 2005, 27(1):25-58.
62. Sutton A.J., Abrams K.R., Jones D.R., Sheldon T.A., Song F. Methods for Meta-analysis in Medical Research 2000, Wiley, Chichester.
63. Tishler A. The demand for cars and gasoline: a simultaneous approach. Eur. Econ. Rev. 1983, 20(1-3):271-287.
64. Uri N.D., Hassanein S.A. Testing for stability: motor gasoline demand and distillate fuel oil demand. Energy Econ. 1985, 7(2):87-92.
65. Wadud Z., Graham D., Noland R. A cointegration analysis of gasoline demand in the United States. Appl. Econ. 2009, 41(26):3327-3336.
66. West S.E., Williams R.C. Optimal taxation and cross-price effects on labor supply: estimates of the optimal gas tax. J. Public Econ. 2007, 91(3-4):593-617.
67. Wheaton W.C. The long-run structure of transportation and gasoline demand. Bell J. Econ. 1982, 13(2):439-454.
68. Wirl F. Energy demand and consumer price expectations: an empirical investigation of the consequences from the recent oil price collapse. Resour. Energy 1991, 13(3):241-262.