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Do car drivers respond differently to fuel price changes? Evidence from German household data

Khanna, Arpita and Dubernet, Ilka and Jochem, Patrick (2023) Do car drivers respond differently to fuel price changes? Evidence from German household data. Transportation. Springer. ISSN 0049-4488. (In Press)

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For cutting down greenhouse gas emissions in road transport, core economic measures are relying on the response to increasing fuel prices -- i.e., the fuel price elasticity. A focal point of the effectiveness of these measures is the heterogeneity in fuel price elasticities of different vehicle users. These effects were often neglected in the transport related literature and were only incorporated recently. The resulting results show, however, sometimes contradicting conclusions on influencing parameters such as income, region-type or household size. In this paper, we used a pooled OLS model estimated on a German refuelling diary data set and analysed the impact of various household level characteristics on fuel price elasticities through an analysis of interaction terms and their marginal effects. This analysis provides a cornerstone in this discussion in the context of fuel price elasticities. We found out that the overall results contrast the existing literature by identifying heterogeneity in fuel price elasticities among German households for different socio-economic and regional characteristics. The results are highly relevant for policy modellers and for introducing effective policy measures for mitigating greenhouse gas emissions in road transport.

Item URL in elib:https://elib.dlr.de/197337/
Document Type:Article
Title:Do car drivers respond differently to fuel price changes? Evidence from German household data
AuthorsInstitution or Email of AuthorsAuthor's ORCID iDORCID Put Code
Dubernet, IlkaUNSPECIFIEDhttps://orcid.org/0000-0003-4130-8303UNSPECIFIED
Jochem, PatrickUNSPECIFIEDhttps://orcid.org/0000-0002-7486-4958UNSPECIFIED
Journal or Publication Title:Transportation
Refereed publication:Yes
Open Access:No
Gold Open Access:No
In ISI Web of Science:Yes
Status:In Press
Keywords:fuel price, elasticity, heterogeneity, Germany, price elasticity
HGF - Research field:Aeronautics, Space and Transport
HGF - Program:Transport
HGF - Program Themes:Transport System
DLR - Research area:Transport
DLR - Program:V VS - Verkehrssystem
DLR - Research theme (Project):V - VMo4Orte - Vernetzte Mobilität für lebenswerte Orte, V - Ökonver II
Location: Berlin-Adlershof , Stuttgart
Institutes and Institutions:Institute of Transport Research > Transport Markets and Mobility Services
Institute of Networked Energy Systems > Energy Systems Analysis, ST
Deposited By: Dubernet, Dr Ilka
Deposited On:29 Sep 2023 10:40
Last Modified:29 Sep 2023 10:40

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