Date of Award
12-2012
Document Type
Thesis
Degree Name
Master of Arts (MA)
Legacy Department
Economics
Committee Chair/Advisor
Espey, Molly
Committee Member
Hanssen , Frederick A
Abstract
Estimating the consumer demand response to changes in the price of gasoline has important implications regarding fuel tax policies and environmental concerns. There are reasons to believe that the short-run price elasticity of gasoline demand fluctuates due to changing structural and behavioral factors. In this paper I estimate the short-run price elasticity of gasoline demand in two time periods, from 2001 to 2006 and from 2007 to 2010. This study utilizes data at both the national and state levels to produce estimates. The short-run price elasticities range from -0.034 to -0.047 during 2001 to 2006, compared to -0.058 to -0.077 in the 2007 to 2010 period. This paper also examines whether there are regional differences in the short-run price elasticity of gasoline demand in the United States. However, there appears to only be modest variation in price elasticity values across regions.
Recommended Citation
Brannan, Michael, "Examining the Short-Run Price Elasticity of Gasoline Demand in the United States" (2012). All Theses. 1541.
https://tigerprints.clemson.edu/all_theses/1541