Gasoline Prices and Fuel Economy of New Vehicles in Quebec

Philippe Barla, Etienne Couture and Mario Samano

Canadian Public Policy, 2016, vol. 42, issue 2, 181-193

Abstract: We evaluate the short-run impact of gasoline prices on new vehicles registrations by fuel economy between 2002 and 2008 in the province of Quebec. We find that a gasoline price increase stimulates registration of new vehicles with a fuel consumption rate below 8.65L/100km (27.2 MPG) while it lowers those of vehicles above that limit. While the impact is modest for most vehicles, large gasoline price fluctuations lead to noticeable changes in the fleet composition. We also find that the Federal ecoAUTO feebate program improved fuel economy of new vehicles by less than 1 percent.

Date: 2016
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