 The Impact of the Fuel Price Policy on the Demand for Diesel Passenger Cars in Korean CitiesJae-Hong Kim, Seungil Lee and John Preston International Review of Public Administration, 2006, vol. 10, issue 2, 61-73 Abstract: This study forecasts the impact of fuel price policy on the diesel car demand after the permission of domestic sales, using a conjoint analysis based on the stated preference survey from 500 respondents in Seoul and 324 respondents in Ulsan, Korea. The estimation results show that the fuel price elasticity is -0.631 and -0.645 for diesel cars in Seoul and Ulsan, respectively and the elasticity of purchase price are -1.332 and -1.058 for diesel cars in Seoul and Ulsan, respectively. The estimates of the diesel price elasticity indicate that the government planned fuel policy increasing diesel price from the current 70% to 85% of petrol price will decrease the demand for diesel cars by 13.8% to 23.4% when the petrol price is kept at the current price. The estimate of the purchase price elasticity denotes that the obligation of pollutantreducing equipment on diesel cars (about 10% of the sales price) will reduce the demand for diesel cars by 13.3% to 14.7%. Date: 2006 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:rrpaxx:v:10:y:2006:i:2:p:61-73 Ordering information: This journal article can be ordered from DOI: 10.1080/12294659.2006.10805069 Access Statistics for this article International Review of Public Administration is currently edited by Ralph Brower More articles in International Review of Public Administration from Taylor & Francis Journals |
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