The Demand for and the Supply of Fuel Efficiency in Models of Industrial Organisation

Johannes Van Biesebroeck

No 2010/9, OECD/ITF Joint Transport Research Centre Discussion Papers from OECD Publishing

Abstract: This report organizes and discusses empirical estimates of the effects of fuel prices and fuel emission standards on consumer and firm behaviour. I touch only briefly on model-free estimates. The focus is on results based on explicit models, taken mostly from the industrial organization literature. First, I review studies that identify the willingness to pay for fuel efficiency using static and dynamic models of vehicle demand. Next, I take explicitly into account that firms will adjust their product portfolios and the characteristics of the vehicles they offer. These decisions will have an impact on the choice set from which consumer demand is estimated and on the trade-off that consumers face between fuel efficiency and other desirable characteristics. Finally, I discuss models where firms choose to invest in innovations to achieve fuel efficiency gains without sacrificing characteristics.

Date: 2010-01-01
New Economics Papers: this item is included in nep-eff and nep-ene
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1787/5kmjp66c9vjc-en (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oec:itfaaa:2010/9-en

Access Statistics for this paper

More papers in OECD/ITF Joint Transport Research Centre Discussion Papers from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).