Demand for New Car Fuel Economy in the UK, 1970-2005
This paper estimates the price and income-elasticity of demand for fuel economy of new cars in the UK using a two-stage econometric model. The factors the authors looked at are: changes in fuel prices; increases in personal income; and the EU Voluntary Agreements with carmakers to reduce emissions of CO2. The paper analyzes time-series data for the UK and uses different data series for petrol and diesel vehicles. Despite improvements in the fuel economy of new cars and the adoption of the emissions agreements, the rapid growth in kilometers driven as well as an increase in the number of cars meant that energy demand and CO2 emissions from private cars had not abated by 2004. As other policies are set to take effect, the various factors involved in reducing emissions, including, but not limited to, improving fuel economy, need to be better understood. The model and results presented here examine the trends and policies in detail that affect these efforts. Two sections contain a definition of fuel economy and describe the trend in CO2 emissions for both new and used passenger vehicles, as well as new car fuel economy regulations. Other sections include a literature review, an overview of the entire model, the two-stage co-integration equation of fuel economy and econometric results of an analysis of automotive fuel economy, and conclusions. A consistent finding is that demand for fuel economy is price and income inelastic for both petrol and diesel cars. There are differences in short-term and long-term analyses of fuel economy. Further research is needed to better understand the influence of the Voluntary Agreements.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/oclc/856156
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Authors:
- Bonilla, David
- Foxon, Timothy
- Publication Date: 2009-1
Language
- English
Media Info
- Media Type: Print
- Features: Appendices; Figures; References; Tables;
- Pagination: pp 55-83
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Serial:
- Journal of Transport Economics and Policy
- Volume: 43
- Issue Number: 1
- Publisher: University of Bath
- ISSN: 0022-5258
- Serial URL: http://www.jtep.com
Subject/Index Terms
- TRT Terms: Automobiles; Demand; Economic models; Fuel consumption; Motor fuels
- Geographic Terms: United Kingdom
- Subject Areas: Economics; Highways; Vehicles and Equipment; I96: Vehicle Operating Costs;
Filing Info
- Accession Number: 01122821
- Record Type: Publication
- Source Agency: UC Berkeley Transportation Library
- Files: BTRIS, TRIS
- Created Date: Feb 27 2009 7:55AM