Demand for gasoline is more price-inelastic than commonly thought

Tomas Havranek, Zuzana Irsova and Karel Janda

No 120416, CUDARE Working Papers from University of California, Berkeley, Department of Agricultural and Resource Economics

Abstract: Demand for gasoline is more price-inelastic than commonly thought Abstract: One of the most frequently examined statistical relationships in energy economics has been the price elasticity of gasoline demand. We conduct a quantitative survey of the estimates of elasticity reported for various countries around the world. Our meta- analysis indicates that the literature suffers from publication selection bias: insignificant or positive estimates of the price elasticity are rarely reported, although implausibly large negative estimates are reported regularly. In consequence, the aver- age published estimates of both short- and long-run elasticities are exaggerated twofold. Using mixed effects multilevel meta-regression, we show that after correction for publication bias the average long-run elasticity reaches -0:31 and the average short-run elasticity only -0:09.

Keywords: Political Economy; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 20
Date: 2011-09-01
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Demand for gasoline is more price-inelastic than commonly thought (2012)
Working Paper: Demand for gasoline is more price-inelastic than commonly thought (2011)
Working Paper: Demand for Gasoline Is More Price-Inelastic than Commonly Thought (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ucbecw:120416

DOI: 10.22004/ag.econ.120416

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