Another look at US passenger vehicle use and the {open_quotes}rebound{close_quotes} effect from improved fuel efficiency
- Murray State Univ., KY (United States)
Recently, Greene (1992) analyzed vehicle miles travelled for U.S. passenger vehicles over 1966-89 to econometrically estimate the {open_quotes}rebound{close_quotes} effect in fuel consumption resulting from improved fuel efficiency. He found that a static AR(1) model could not be rejected, implying that the rebound effect is small (13%) with no significant long-run adjustments, regardless of the assumed functional form (linear or loglinear). Another look at the data from a different model selection approach shows that while a loglinear AR(1) model is acceptable, the linear version is not. Using either form, a lagged dependent variable model cannot be rejected on statistical grounds yet has insignificant GNP effects, yielding similarly small short-run rebound effects but significant long-run rebound effects of about 30%. Thus, the evidence from these competing models for a significant long-run adjustment process is mixed, so that its presence cannot be completely ruled out. 13 refs., 2 tabs.
- OSTI ID:
- 226814
- Journal Information:
- Energy Journal, Vol. 14, Issue 4; Other Information: PBD: 1993
- Country of Publication:
- United States
- Language:
- English
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