Evidence of a Shift in the Short-Run Price Elasticity of Gasoline Demand / 97 Figure 1. Monthly Per capita Gasoline consumption and Real Retail Gasoline Price for January 1974 to March 2006Figure 2.istorically, estimates of gasoline demand elasticities have proven to be fairly robust. In their survey, Dahl and Sterner (1991) determine an average short-run price elasticity of gasoline demand of -0.26 and an average short-run income elasticity of gasoline demand of 0.48.
http://web.mit.edu/knittel/www/papers/gas_demand_final.pdf
Our estimates of the short-run price elasticity of gasoline demand for the period from 1975 to 1980 range between -0.21 and -0.34 and are consistent with previous results from the literature. For the period from 2001 to 2006 our estimates of price elasticity range from -0.034 to -0.077.istorically, estimates of gasoline demand elasticities have proven to be fairly robust. In their survey, Dahl and Sterner (1991) determine an average short-run price elasticity of gasoline demand of -0.26 and an average short-run income elasticity of gasoline demand of 0.48.
http://web.mit.edu/knittel/www/papers/gas_demand_final.pdf
In the long run, the best estimate of the price elasticity of demand for auto fuel seems to be -0.7. That is, a 10 percent rise in prices will reduce gas consumption by 7 percent.Of this, 4 points come from shifting to cars with better mileage, 3 points from driving less.n the long run, the best estimate of the price elasticity of demand for auto fuel seems to be -0.7. That is, a 10 percent rise in prices will reduce gas consumption by 7 percent.
http://krugman.blogs.nytimes.com/2008/05/09/prices-and-gasoline-demand/comment-page-2/
- 1 - Gasoline price volatility and the elasticity of demand for gasoline 1 C.-Y. Cynthia Lin a and Lea Prince b Department of Agricultural and Resource Economics University of California, Davis, California Abstract We examine how gasoline price volatility impacts consumers’ price elasticity of demand for gasoline.eywords: gasoline demand elasticity, gasoline price volatility a Lin (corresponding author): Assistant Professor, Department of Agricultural and Resource Economics, University of California at Davis, One Shields Avenue, Davis, CA 95616; phone: (530) 752-0824; fax: (530) 752-5614; email: cclin@primal.ucdavis.edu.
http://www.des.ucdavis.edu/faculty/Lin/gas_price_volatility_paper.pdf
1 A good is considered to be relatively elastic when the price elasticity of demand exceeds an absolute value of 1. 2  This indicates that if the price of the good changes by 1%, the response in the quantity demand is greater than 1%.3  The demand curves for elastic goods are relatively flat in slope.here are few substitutes for purchasing gasoline, especially in the short-run. In this case the price of a gallon of gas rises from $1 a gallon to $1.10, a 10% increase. The quantity demand falls very little-from 20 gallons to 19, a 5% decrease.
http://spot.colorado.edu/~kaplan/econ2010/section4/section4-main.html
Estimates of the short-run price elasticity of gasoline demand for the period from 1975 to 1980 range from -0.21 and -0.34 and are consistent with estimates from the literature that use comparable data.istorically, estimates of gasoline demand elasticities have proven to be fairly robust. In their survey, Dahl and Sterner (1991) determine an average short-run price elasticity of gasoline demand of -0.26 and an average short-run income elasticity of gasoline demand of 0.48.
http://web.mit.edu/knittel/www/papers/gas_demand_final.pdf
We compare the price and income elasticities of gasoline demand in two periods of similarly high prices from 1975 to 1980 and 2001 to 2006. The short-run price elasticities differ considerably: and range from -0.034 to -0.077 during 2001 to 2006, versus -0.21 to -0.34 for 1975 to 1980.istorically, estimates of gasoline demand elasticities have proven to be fairly robust. In their survey, Dahl and Sterner (1991) determine an average short-run price elasticity of gasoline demand of -0.26 and an average short-run income elasticity of gasoline demand of 0.48.
http://web.mit.edu/knittel/www/papers/gas_demand_final.pdf
There are few substitutes for purchasing gasoline, especially in the short-run. In this case the price of a gallon of gas rises from $1 a gallon to $1.10, a 10% increase. The quantity demand falls very little-from 20 gallons to 19, a 5% decrease.The resulting elasticity calculation is 0.5 (% change in quantity demanded / % change in price = 5%/10%, in absolute terms).here are few substitutes for purchasing gasoline, especially in the short-run. In this case the price of a gallon of gas rises from $1 a gallon to $1.10, a 10% increase. The quantity demand falls very little-from 20 gallons to 19, a 5% decrease.
http://spot.colorado.edu/~kaplan/econ2010/section4/section4-main.html
The price elasticity of motor gasoline is currently estimated to be in the range of -0.02 to -0.04 in the short term, meaning it takes a 25% to 50% decrease in the price of gasoline to raise automobile travel 1%.he U.S. average retail price per gallon of regular motor gasoline has fallen 28% from its 2014 peak of $3.70 per gallon on June 23, to $2.68 per gallon on December 8. However, this price decline may not have much effect on automobile travel, and in turn, gasoline consumption.
http://www.eia.gov/todayinenergy/detail.cfm?id=19191
In the mid 1990s, the price elasticity for gasoline was higher, around -0.08, meaning it only took a 12% decrease in the price of gasoline to raise automobile travel by 1%.he U.S. average retail price per gallon of regular motor gasoline has fallen 28% from its 2014 peak of $3.70 per gallon on June 23, to $2.68 per gallon on December 8. However, this price decline may not have much effect on automobile travel, and in turn, gasoline consumption.
http://www.eia.gov/todayinenergy/detail.cfm?id=19191
price elasticity of demand gasoline
The price elasticity of demand gasoline is -0.26. The price elasticity of demand for gasoline is minus 0.26.