 Elasticities of transport fuels at times of economic crisis: An empirical analysis for SpainMohcine Bakhat, Xavier Labandeira, Jose Labeaga and Xiral López-Otero Energy Economics, 2017, vol. 68, issue S1, 66-80 Abstract: This paper provides an updated calculation of the price and income responsiveness of Spanish consumers of transport 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 transport fuels, with a higher effect on diesel than on gasoline. By contrary, the crisis slightly reduced the income elasticity of transport 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 transport fuel prices as well as to advance some of the potential consequences of crises elsewhere. Keywords: Diesel; Gasoline; Income; Price; Regions; Panel data (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:68:y:2017:i:s1:p:66-80 DOI: 10.1016/j.eneco.2017.10.019 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
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