Can a reduction in fuel use result from an endogenous technical progress in motor vehicles? A partial and general equilibrium analysis

Gioele Figus, J Kim Swales () and Karen Turner
Additional contact information
J Kim Swales: Departrment of Economics, University of Strathclyde

No 1705, Working Papers from University of Strathclyde Business School, Department of Economics

Abstract: In this paper we employ a partial equilibrium approach to model private transport consumption as a household self-produced commodity formed by vehicle and fuel use. We show that under certain conditions vehicle-augmenting technical improvements can reduce fuel use. We then extend the analysis through Computable General Equilibrium simulations for the UK in order to investigate the wider implications of vehicle-augmenting efficiency improvements when prices and nominal income are endogenous. With a conventional macroeconomic approach, improvements in the efficiency of household consumption simply change the composition of household demand. However, when we adjust the consumer price index for changes in the price of private transport service (not observable via a market price), as advocated in Gordon (2016) there is an additional supply-side stimulus to competitiveness.

Keywords: technical progress; energy efficiency; private transport; energy service. (search for similar items in EconPapers)
JEL-codes: C68 D58 Q43 Q48 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2017-05
New Economics Papers: this item is included in nep-cmp, nep-ene and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published

Downloads: (external link)
https://www.strath.ac.uk/media/1newwebsite/departm ... ed.ce.bOW51WUVzd.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

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:str:wpaper:1705

Access Statistics for this paper

More papers in Working Papers from University of Strathclyde Business School, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Kirsty Hall ().