Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

Price elasticities of demand for transportation fuels

Book ·
OSTI ID:5693470
This study develops and reviews estimates of the fuel price elasticity for gasoline, jet fuel, and diesel fuel use in the transport sector. Auto and truck transport are the principal modes considered in developing estimates of gasoline price elasticity, truck and rail for diesel price elasticity, and passenger air service for jet fuel elasticity. Sources of data reviewed or analyzed in this study include: econometric models of transport fuel consumption, urban and intercity passenger travel demand, and intercity freight demand; factors affecting energy consumption (operating speed, vehicle design, average loads); average fuel costs and revenues by mode; and relationships between fuel costs and transport rates. The most reliable price elasticity estimates derived were for gasoline. Greater confidence can be attached to estimates of short-run elasticity than to long-run. The estimates developed in this study suggest that the most significant impact in the short run on the transport sector will result from gasoline price changes.
OSTI ID:
5693470
Report Number(s):
NP-24138
Country of Publication:
United States
Language:
English