HOUSEHOLD IMPACTS OF GASOLINE DECONTROL

The Phase I CHRD System was used to estimate the direct impact on household gasoline expenditures of the gasoline price decontrol proposal. Decontrol was evaluated under two assumptions, a uniform 3 cents per gallon price increase at the pump in 1979 and a higher, 10 cents per gallon increase in 1979. Decontrol is estimated to increase average gasoline expenditures for households owning one or more cars from $724 under the current regulation (BAU) scenario for 1979 to $789 under the 10 cents decontrol scenario. This increase amounts to a change of 0.5 in the percent of disposable income spent on gasoline. These impacts are examined for a variety of population subgroups in the body of this report and the estimated impact varies substantially. In absolute dollar terms, the impact is obviously greatest on those who drive a lot, with workers commuting more than 15,000 miles annually estimated to spend $114 more on gasoline under the 10 cents decontrol scenario. Higher income families drive more on average than low income families, and, hence, have larger dollar increases from decontrol, but the impact as measured by the percent of disposable income spent on gasoline is higher for lower income families where an additional 0.8 of a percent of their disposable income is devoted to gasoline, compared with an additional 0.3 of a percent for families with incomes over $20,000.

  • Corporate Authors:

    Mathematica Policy Research, Incorporated

    2101 L Street, NW
    Washington, DC  United States  20037

    Hendrickson Corporation

    7315 Wisconsin Avenue
    Bethesda, MD  United States  20014

    Department of Energy

    1000 Independence Avenue, SW
    Washington, DC  United States  20585
  • Authors:
    • Beebout, H
    • King, J
  • Publication Date: 1977-8-31

Media Info

  • Pagination: 35 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00192184
  • Record Type: Publication
  • Source Agency: National Technical Information Service
  • Files: TRIS
  • Created Date: Jul 11 1979 12:00AM