Suggested Citation:
Lin Lawell, C.-Y. Cynthia and Jieyin (Jean) Zeng (2012) The Elasticity of Demand for Gasoline in China. Institute of Transportation Studies, University of California, Davis, Research Report UCD-ITS-RR-12-15

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.

Keywords: China, gasoline price elasticity, VMT elasticity