The Price of Gasoline and New Vehicle Fuel Economy: Evidence from Monthly Sales Data

A-Tier
Journal: American Economic Journal: Economic Policy
Year: 2010
Volume: 2
Issue: 3
Pages: 134-53

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper uses a unique dataset of monthly new vehicle sales by detailed model from 1978 to 2007, and implements a new identification strategy to estimate the effect of the price of gasoline on individual vehicle model sales. We control for unobserved vehicle and consumer characteristics by using within model year changes in the price of gasoline and sales. We find a significant sales response, suggesting that the gasoline price increase from 2002 to 2007 explains nearly half of the decline in market share of US manufacturers. On the other hand, an increase in the gasoline tax would only modestly raise average fuel economy. (JEL H25, L11, L62, L71)

Technical Details

RePEc Handle
repec:aea:aejpol:v:2:y:2010:i:3:p:134-53
Journal Field
General
Author Count
2
Added to Database
2026-01-25