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ID169904
Title ProperEffect of gasoline prices on car fuel efficiency
Other Title Informationevidence from Lebanon
LanguageENG
AuthorMarrouch, Walid
Summary / Abstract (Note)This paper explores how gasoline prices affect the sales of new and used cars in Lebanon. Using a rich dataset on monthly imported cars from 2000 to 2016, a vector autoregressive analysis is used to model different consumer choices between fuel-efficient cars, midsize cars, and fuel-inefficient cars. We report the first empirical evidence on this question from the Middle East and North Africa (MENA) region using individual automobile data. We use within sample and out-of-sample tests to examine whether gasoline prices influence the sale of fuel-efficient cars. Our results show evidence against the hypothesis that rising gasoline prices shift consumers’ demand toward the most fuel-efficient cars.
`In' analytical NoteEnergy Policy , No.135;Dec 2019: p.111001
Journal SourceEnergy Policy 2019-12
Key WordsLebanon ;  Imports ;  Fuel Efficiency ;  Consumer Choice ;  Gasoline Prices ;  Automobiles