Income and price elasticities of gasoline demand in the organization of Arab Petroleum Exporting Countries

Journal Article · · Journal of Energy and Development; (United States)

OSTI ID:6993408

Al-Faris, A F

Of all petroleum products, transport fuels, which have limited substitutes and constitute the largest component of a barrel's value, are by far the most important. The perceived lower price elasticity of demand for transport fuels makes them subject to excessive taxes in both developed and developing countries for budgetary, conservationist, and environmental reasons. Demand for gasoline, in particular, has received considerable attention from energy analysts and policy makers alike in the industrial countries. Gasoline demand and generally energy demand in less-developed countries (LDCs), including major crude oil-producing countries, have received much less attention. Demand for gasoline has grown rapidly in the 11 members of the Organization of Arab Petroleum Exporting Countries (OAPEC) during the last two decades. Among other factors, an increase in private disposable income, massive migration, and urbanization have contributed to this growth. A considerable rise in oil revenues, especially after the two oil price adjustments of 1973-1974 and 1979-1980, helped these countries undertake ambitious development programs aimed at enhancing both infrastructures and living standards of their people. This article has two objectives. The first is to investigate the determinants of demand for gasoline in the OAPEC members and to obtain short- and long-run income and price elasticities. The second is to discuss, in the light of the statistical findings of the paper, the relevance of some proposed governmental energy policies in these countries. 6 refs., 8 tabs.

• OSTI ID: 6993408
• Journal Information: Journal of Energy and Development; (United States), Journal Name: Journal of Energy and Development; (United States) Vol. 27:2; ISSN 0361-4476; ISSN JENDD2
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
294002 -- Energy Planning & Policy-- Petroleum
DEMAND
ECONOMIC ANALYSIS
ECONOMIC ELASTICITY
ECONOMICS
ENERGY DEMAND
ENERGY POLICY
FUELS
GASOLINE
GOVERNMENT POLICIES
INTERNATIONAL ORGANIZATIONS
LIQUID FUELS
OAPEC
OIL-EXPORTING COUNTRIES
PETROLEUM PRODUCTS