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An analysis of the 1978–1980 decline in gasoline consumption in the United States

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  • Greene, D.L.
  • Kulp, G.

Abstract

Unprecedented declines in highway use of gasoline in the United States in 1979 and 1980 are analyzed by means of a gasoline demand model. Approximately half of the reduction in use in each year over the preceding year can be attributed to the short run effect of higher gasoline prices. Most of the remainder can be traced to declines in real household incomes and increasing fleet fuel efficiencies. The summer fuel shortage of 1979 appears to be responsible for 15% of the reduction in use in that year. Continuing declines are anticipated, primarily due to increasing new vehicle economy.

Suggested Citation

  • Greene, D.L. & Kulp, G., 1982. "An analysis of the 1978–1980 decline in gasoline consumption in the United States," Energy, Elsevier, vol. 7(4), pages 367-375.
    • Handle: RePEc:eee:energy:v:7:y:1982:i:4:p:367-375
    DOI: 10.1016/0360-5442(82)90096-2
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