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Consumer adjustment to a gasoline tax

Journal Article · · Rev. Econ. Stat.; (United States)
DOI:https://doi.org/10.2307/1926072· OSTI ID:6073647
A study of how customers will respond to a tax based on miles per gallon indicates that the long-term effect on gasoline consumption could reduce crude oil imports by 27 percent. When demand elasticity of gasoline is broken down into the price elasticity of demand minus the price elasticity of demand for fuel mileage, it is learned that the short-term miles per gallon factor is larger than previously thought. Adjustments in the stock of automobiles to those providing better gas mileage is indicated by a 20 percent increase in miles per gallon with an additional 40 percent gasoline tax. 20 references.
Research Organization:
Wayne State Univ., Detroit, MI
OSTI ID:
6073647
Journal Information:
Rev. Econ. Stat.; (United States), Journal Name: Rev. Econ. Stat.; (United States) Vol. 61:3; ISSN RECSA
Country of Publication:
United States
Language:
English