The Elasticity of Demand for Gasoline in China
Available online at: http://dx.doi.org/10.1016/j.enpol.2013.03.020
Lin Lawell, C.-Y. Cynthia and Jieyin (Jean) Zeng (2013) The Elasticity of Demand for Gasoline in China. Energy Policy 59, 189 - 197
This paper estimates the price and income elasticities of demand for gasoline in China. Our estimates of the intermediate-run price elasticity of gasoline demand range between −0.497 and −0.196, and our estimates of the intermediate-run income elasticity of gasoline demand range between 1.01 and 1.05. We also extend previous studies to estimate the vehicle miles traveled (VMT) elasticity and obtain a range from −0.882 to −0.579.