Impact of economic and non-economic factors on gasoline demand: a varying parameter model for Sweden and the UK
(English)Manuscript (preprint) (Other academic)
This paper investigated the impact of price, income and non-economic factors on gasoline demand using a structural time series model. The results indicated that non-economic factors did have an impact on gasoline demand and also one of the largest contributors to changes in gasoline demand in both countries, especially after the 1990s. The results from the time varying parameter model (TVP) indicated that both price and income elasticities were varying over time, but the variations were insignificant for both Sweden and the UK. The estimated gasoline trend also showed a similar pattern for the two countries, increasing continuously up to 1990 and taking a downturn thereafter.
Gasoline demand, Time Varying Parameter, Tax Simulation, Unobserved Trend
Research subject Economics
IdentifiersURN: urn:nbn:se:umu:diva-79697OAI: oai:DiVA.org:umu-79697DiVA: diva2:643984
FunderSwedish Energy Agency