Climate | Climate | Working Paper
Elasticities of car fuels at times of economic crisis : an empirical analysis for Spain
22 February 2017
BY: BAKHAT Mohcine, Xavier Labandeira, LABEAGA Jose Maria, LÓPEZ-OTERO Xiral
This paper provides an updated calculation of the price and income responsiveness of Spanish consumers of car fuels, with an explicit exploration of the effects of the recent economic crisis. We examine separate gasoline and diesel demand models using a set of estimators on a panel of 16 Spanish regions over the period 1999-2015. The paper confirms the persistence of low own-price elasticities both for diesel and gasoline in the short and long runs. It also shows that the crisis of 2008-2013 slightly increased the price elasticity of demand for car fuels, with a higher effect on diesel than on gasoline. By contrary, the crisis slightly reduced the income elasticity of car-fuel demand. Given the intensity and length of the economic recession in Spain, the results of this paper may be useful to anticipate the effects of domestic public policies that impact car-fuel prices as well as to advance some of the potential consequences of crises elsewhere.
logo cadmus Read it on Cadmus Download in open access

LATEST FSR PUBLICATIONS

Other
About 1,100 TWh of natural gas can be stored in 115 storage facilities in 19 countries in the EU27 area, accounting for 25-30% of European consumption in winter periods. Securing [...]
Other
The outbreak of the Russia-Ukraine war has revived discussions on the EU’s dependence on fossil fuel imports from Russia. To ensure gas diversification, the EU Commission has suggested over a [...]
Other
The recent surge in energy prices has prompted many governments to introduce emergency measures to reduce the impact on consumers’ electricity and gas bills. In its REPowerEU Communication of 8 [...]
Other
Different measures for carbon leakage prevention across Emissions Trading Systems (ETSs) may distort economic competition between firms. The same is true of competition between jurisdictions if decisions on the location [...]
Working Paper
The global litigation of standard essential patents (SEP) is taking a new turn with the jurisdictional battle between national courts. Some courts have started issuing anti-suit injunctions (ASI) to prohibit [...]
Article
This paper investigates the possible dynamics that may emerge in an economy in which agents adapt to environmental degradation by increasing the produced output to repair the damages of environmental [...]

Join our community

To meet, discuss and learn in the channel that suits you best.

scroll

top