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Modelling Fuel Demand of Passenger Cars in Spain A Dynamic Panel Data Analysis Using the Generalised Method of Moments

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  • Desiderio Romero-Jordán
  • Pablo del Río
  • Mercedes Burguillo

Abstract

This paper identifies the main determinants of fuel consumption by households in the passenger transport sector in Spain (private cars). We estimate a Generalised Method of Moments model using quarterly (panel) data on automotive fuel consumption by 8,000 households between 1998 and 2005. The paper shows a clear persistence of habit in fuel consumption and a strong, statistically significant relationship between household transport fuel consumption and income, price of public transport, and fuel prices. In addition, consumption is significantly related to household size, the geographical location of the household, and whether the breadwinner is an employer and an employee. © 2014 LSE and the University of Bath

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  • Desiderio Romero-Jordán & Pablo del Río & Mercedes Burguillo, 2014. "Modelling Fuel Demand of Passenger Cars in Spain A Dynamic Panel Data Analysis Using the Generalised Method of Moments," Journal of Transport Economics and Policy, University of Bath, vol. 48(2), pages 315-332, May.
    • Handle: RePEc:tpe:jtecpo:v:48:y:2014:i:2:p:315-332
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    Cited by:

    1. Mattioli, Giulio & Wadud, Zia & Lucas, Karen, 2018. "Vulnerability to fuel price increases in the UK: A household level analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 227-242.
    2. Bakhat, Mohcine & Labandeira, Xavier & Labeaga, José M. & López-Otero, Xiral, 2017. "Elasticities of transport fuels at times of economic crisis: An empirical analysis for Spain," Energy Economics, Elsevier, vol. 68(S1), pages 66-80.
    3. Marrero, Ángel S. & Marrero, Gustavo A. & González, Rosa Marina & Rodríguez-López, Jesús, 2021. "Convergence in road transport CO2 emissions in Europe," Energy Economics, Elsevier, vol. 99(C).
    4. Böhringer, Christoph & García-Muros, Xaquín & González-Eguino, Mikel, 2022. "Who bears the burden of greening electricity?," Energy Economics, Elsevier, vol. 105(C).

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