IDEAS home Printed from https://ideas.repec.org/a/taf/rrpaxx/v10y2006i2p61-73.html
   My bibliography  Save this article

The Impact of the Fuel Price Policy on the Demand for Diesel Passenger Cars in Korean Cities

Author

Listed:
  • Jae-Hong Kim
  • Seungil Lee
  • John Preston

Abstract

This study forecasts the impact of fuel price policy on the diesel car demand after the permission of domestic sales, using a conjoint analysis based on the stated preference survey from 500 respondents in Seoul and 324 respondents in Ulsan, Korea. The estimation results show that the fuel price elasticity is -0.631 and -0.645 for diesel cars in Seoul and Ulsan, respectively and the elasticity of purchase price are -1.332 and -1.058 for diesel cars in Seoul and Ulsan, respectively. The estimates of the diesel price elasticity indicate that the government planned fuel policy increasing diesel price from the current 70% to 85% of petrol price will decrease the demand for diesel cars by 13.8% to 23.4% when the petrol price is kept at the current price. The estimate of the purchase price elasticity denotes that the obligation of pollutantreducing equipment on diesel cars (about 10% of the sales price) will reduce the demand for diesel cars by 13.3% to 14.7%.

Suggested Citation

  • Jae-Hong Kim & Seungil Lee & John Preston, 2006. "The Impact of the Fuel Price Policy on the Demand for Diesel Passenger Cars in Korean Cities," International Review of Public Administration, Taylor & Francis Journals, vol. 10(2), pages 61-73, January.
    • Handle: RePEc:taf:rrpaxx:v:10:y:2006:i:2:p:61-73
    DOI: 10.1080/12294659.2006.10805069
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/12294659.2006.10805069
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/12294659.2006.10805069?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bruce Walker & Alex Marsh & Mark Wardman & Pat Niner, 2002. "Modelling Tenants' Choices in the Public Rented Sector: A Stated Preference Approach," Urban Studies, Urban Studies Journal Limited, vol. 39(4), pages 665-688, April.
    2. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, September.
    3. Daniel J. Graham & Stephen Glaister, 2002. "The Demand for Automobile Fuel: A Survey of Elasticities," Journal of Transport Economics and Policy, University of Bath, vol. 36(1), pages 1-25, January.
    4. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, January.
    5. Murphy, James J. & Stevens, Thomas H., 2004. "Contingent Valuation, Hypothetical Bias, and Experimental Economics," Agricultural and Resource Economics Review, Cambridge University Press, vol. 33(2), pages 182-192, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tovar, Miguel A., 2011. "An integral evaluation of dieselisation policies for households' cars," Energy Policy, Elsevier, vol. 39(9), pages 5228-5242, September.
    2. Lee, Jongsu & Cho, Youngsang, 2009. "Demand forecasting of diesel passenger car considering consumer preference and government regulation in South Korea," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(4), pages 420-429, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Farmer & Clifford Lipscomb, 2008. "Conservative dichotomous choice responses in the active policy setting: DC rejections below WTP," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 39(3), pages 223-246, March.
    2. Zhifeng Gao & Ted C. Schroeder, 2009. "Consumer responses to new food quality information: are some consumers more sensitive than others?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 339-346, May.
    3. Ortega, David L. & Wang, H. Holly & Wu, Laping & Hong, Soo Jeong, 2015. "Retail channel and consumer demand for food quality in China," China Economic Review, Elsevier, vol. 36(C), pages 359-366.
    4. Doherty, Edel & Campbell, Danny, 2011. "Demand for improved food safety and quality: a cross-regional comparison," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108791, Agricultural Economics Society.
    5. Kesternich, Iris & Heiss, Florian & McFadden, Daniel & Winter, Joachim, 2013. "Suit the action to the word, the word to the action: Hypothetical choices and real decisions in Medicare Part D," Journal of Health Economics, Elsevier, vol. 32(6), pages 1313-1324.
    6. David Hensher & John Rose & Zheng Li, 2012. "Does the choice model method and/or the data matter?," Transportation, Springer, vol. 39(2), pages 351-385, March.
    7. Toşa, Cristian & Sato, Hitomi & Morikawa, Takayuki & Miwa, Tomio, 2018. "Commuting behavior in emerging urban areas: Findings of a revealed-preferences and stated-intentions survey in Cluj-Napoca, Romania," Journal of Transport Geography, Elsevier, vol. 68(C), pages 78-93.
    8. Qin, Pin & Carlsson, Fredrik & Xu, Jintao, 2009. "Forestland Reform in China: What do the Farmers Want? A Choice Experiment on Farmers’ Property Rights Preferences," Working Papers in Economics 370, University of Gothenburg, Department of Economics.
    9. Ping Qin & Fredrik Carlsson & Jintao Xu, 2011. "Forest Tenure Reform in China: A Choice Experiment on Farmers’ Property Rights Preferences," Land Economics, University of Wisconsin Press, vol. 87(3), pages 473-487.
    10. Joachim Marti, 2012. "Assessing preferences for improved smoking cessation medications: a discrete choice experiment," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(5), pages 533-548, October.
    11. Dugstad, Anders & Grimsrud, Kristine & Kipperberg, Gorm & Lindhjem, Henrik & Navrud, Ståle, 2020. "Acceptance of wind power development and exposure – Not-in-anybody's-backyard," Energy Policy, Elsevier, vol. 147(C).
    12. Ting Li & Robert J. Kauffman & Eric van Heck & Peter Vervest & Benedict G. C. Dellaert, 2014. "Consumer Informedness and Firm Information Strategy," Information Systems Research, INFORMS, vol. 25(2), pages 345-363, June.
    13. Deenihan, Gerard & Caulfield, Brian, 2015. "Do tourists value different levels of cycling infrastructure?," Tourism Management, Elsevier, vol. 46(C), pages 92-101.
    14. Domínguez-Torreiro, Marcos & Soliño, Mario, 2011. "Provided and perceived status quo in choice experiments: Implications for valuing the outputs of multifunctional rural areas," Ecological Economics, Elsevier, vol. 70(12), pages 2523-2531.
    15. Ateesha Mohamed & A. Hauber & Maureen Neary, 2011. "Patient Benefit-Risk Preferences for Targeted Agents in the Treatment of Renal Cell Carcinoma," PharmacoEconomics, Springer, vol. 29(11), pages 977-988, November.
    16. Lipovetsky, Stan, 2018. "Quantum paradigm of probability amplitude and complex utility in entangled discrete choice modeling," Journal of choice modelling, Elsevier, vol. 27(C), pages 62-73.
    17. Basu, Debasis & Hunt, John Douglas, 2012. "Valuing of attributes influencing the attractiveness of suburban train service in Mumbai city: A stated preference approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(9), pages 1465-1476.
    18. Gevrek, Z.Eylem & Uyduranoglu, Ayse, 2015. "Public preferences for carbon tax attributes," Ecological Economics, Elsevier, vol. 118(C), pages 186-197.
    19. Martine Audibert & Yong He & Jacky Mathonnat, 2013. "Two-Period Comparison of Healthcare Demand with Income Growth and Population Aging in Rural China: Implications for Adjustment of the Healthcare Supply and Development," Working Papers halshs-00846088, HAL.
    20. Broberg, Thomas & Daniel, Aemiro Melkamu & Persson, Lars, 2021. "Household preferences for load restrictions: Is there an effect of pro-environmental framing?," Energy Economics, Elsevier, vol. 97(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rrpaxx:v:10:y:2006:i:2:p:61-73. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RRPA20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.