Full Citation

Title: How Do Gasoline Prices Affect Fleet Fuel Economy?

Citation Type: Journal Article

Publication Year: 2009

ISBN:

ISSN:

DOI:

NSFID:

PMCID:

PMID:

Abstract: Exploiting a rich data set of passenger vehicle registrations in twenty U.S. metropolitan statistical areas from 1997 to 2005, we examine the effects ofgasoline prices on the automotive fleets composition. We find that high gasoline prices affect fleet fuel economy through two channels: (1) shifting new auto purchases towards more fuel-efficient vehicles, and (2) speeding the scrappage of older, less fuel-efficient used vehicles. Policy simulations based on our econometric estimates suggest that a 10 percent increase in gasoline prices from 2005 levels will generate a 0.22 percent increase in fleet fuel economy in the short run and a 2.04 percent increase in the long run.

User Submitted?: No

Authors: Timmins, Christopher; von Haefen, Roger H.; Li, Shanjun

Periodical (Full): American Economic Journal: Economic Policy

Issue: 2

Volume: 1

Pages: 113-137

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

Countries: