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


Working Paper
Having identified the basic characteristics of the current energy crisis and its particular shape in the European Union, three questions immediately arise. 1) If gas is at the ‘core’ of [...]
Technical Report
In this report we focus on the fundamentals of energy and climate policy as reformulated in the EU Green Deal. The 2022 edition includes updates following the publication of the [...]
Technical Report
Against the backdrop of the European Green Deal and the subsequent ‘Fit for 55’ Package, the basic infrastructures will have to become more sustainable over the course of their entire [...]
Economic regulators of water and sanitation services (WSS) across Europe were originally established to address harmful consequences arising from the natural monopoly of the sector. This is reflected in their [...]
The COVID-19 pandemic has almost forced the aviation industry to a halt in 2020, at least when it comes to the provision of passenger services: the number of active routes, [...]
Working Paper
We think that the electricity markets that were developed over the last two decades did what they were supposed to do during this crisis: through higher prices, they convey the [...]

Join our community

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