Meta-analysis of the income and price elasticities of gasoline demand: public policy implications for Latin America

Alatorre, José Eduardo
Samaniego, Joseluis
Galindo, Luis Miguel

2016-04-20T13:55:21Z

LC/G.2652-P
1

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By means of a meta-analysis, this article sets out to estimate average values for the income and price elasticities of gasoline demand and to analyse the reasons for the variations in the elasticities reported by the literature. The findings show that there is publication bias, that the volatility of elasticity estimates is not due to sampling errors alone, and that there are systematic factors explaining these differences. The income and price elasticities of gasoline demand differ between the short and long run and by region, and the estimation can appropriately include the vehicle fleet and the prices of substitute goods, the data types and the estimation methods used. The presence of a low price elasticity suggests that a fuel tax will be inadequate to control rising consumption in a context of rapid economic growth.

PRICES; CONSUMPTION; ECONOMETRIC MODELS; SUPPLY AND DEMAND; GASOLINE; GASOLINA; OFERTA Y DEMANDA; PRECIOS; CONSUMO; MODELOS ECONOMETRICOS;