Subtask IV Report: Estimating the Price Elasticity of Fuel Demand. Vehicle-Purchase Behavior and Auto-Use-Trend Analysis

摘要

A broad spectrum of possible specifications for a short-term fuel demand price elasticity model is examined, and the suitability of alternative specifications is judged. Specifications are tested separately for cars and light duty trucks in order to determine whether there is sufficient difference in the price elasticity coefficient to justify treating these two major vehicle classes individually. The methodology used in conducting the study is discussed. Topics covered are the choice of variables, screening of data, size of the samples, and a description of the model specifications which are studied. Results are discussed, including price elasticity, non-price coefficients, and a summary and recommendations for further work. (ERA citation 07:047222)