Long-run relationship among transport demand,income, and gasoline price for the US

Energy used in transport is a particularly important focus for environment-development studies because it is increasing in both developed and developing countries and is largely carbon-intensive. This paper examines whether a systemic, mutually causal, cointegrated relationship exists among mobility demand, gasoline price, income, and vehicle ownership using US data from 1946 to 2006. We find that those variables co-evolve in a transport system; and thus, they cannot be easily disentangled in the short-run. However, estimating a long-run relationship for motor fuel use per capita was difficult because of the efficacy of the CAFE standards to influence fleet fuel economy. The analysis shows that the fuel standards program was effective in improving the fuel economy of the US vehicle fleet and in temporarily lessening the impact on fuel use of increased mobility demand. Among the policy implications are a role for efficiency standards, a limited impact for fuel tax, and the necessity of using a number of levers simultaneously to influence transport systems.     

The systemic,long-run relation among gasoline demand,gasoline price,income, and vehicle ownership in OECD countries: Evidence from panel cointegration and causality modeling

This paper looks at relationships between gasoline consumption per capita, income, gasoline price, and car ownership for a panel of OECD countries. Estimated long-run and short-run income elasticities are smaller than typically found and gasoline consumption is Granger-caused by gasoline price, but not by car ownership or income. Car ownership is Granger-caused by income and at the margin by gasoline consumption, but not by gasoline price.