Short-run price and income elasticity of gasoline demand: Evidence from Lebanon

Bernard Ben Sita, Walid Marrouch () and Salah Abosedra

Energy Policy, 2012, vol. 46, issue C, 109-115

Abstract: We empirically estimate the demand for gasoline in the presence of multiple shifts caused by structural breaks using monthly data from Lebanon covering the period 2000:M1–2010:M12. Consistent with most studies in the literature, our study reports that gasoline is price and income inelastic in the short-run. However, when a single and multiple breaks are introduced, the consumers’ responsiveness to gasoline price and income increase. Since both price and income elasticity are sensitive to structural changes, a policy that pleads for a flat excise tax may not be optimal with respect to either the cyclical pattern of government revenues or the internalization of international environment standards.

Keywords: Gasoline demand; Elasticity; Structural breaks (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421512002467
Full text for ScienceDirect subscribers only

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:eee:enepol:v:46:y:2012:i:c:p:109-115

DOI: 10.1016/j.enpol.2012.03.041

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().