[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2012-04-1.html
   My bibliography  Save this article

A Dynamic Model for Road Gasoline and Diesel Consumption: An Application for Spanish Regions

Author

Listed:
  • Rosa M. Gonz lez-Marrero

    (Departamento An lisis Econ mico, IUDR, Universidad de La Laguna, Spain)

  • Rosa M. Lorenzo-Alegr a

    (Departamento An lisis Econ mico, IUDR, Universidad de La Laguna, Spain)

  • Gustavo A. Marrero

    (Departamento An lisis Econ mico, IUDR, Universidad de La Laguna, Spain)

Abstract
This paper analyzes the factors explaining the aggregate fuel consumption for road transport in Spain in a dynamic panel data framework. Three features on this study are the use of a balanced panel using regional data, the distinction between gasoline and diesel and the specification of a dynamic panel data (DPD) model and estimate it by system Generalized Methods of Moments (GMM). Our results show that most explanatory variables are significant in explaining the evolution of gasoline consumption, while diesel consumption is found to be independent of most of these factors. The differences between the markets of the gasoline (most for passenger transport use) and the diesel (passenger and freight transport are important) could explain the results for the diesel model. Moreover, the intensive dieselization process that has taken place in Spain over the last decade, which has resulted in diesel consumption being exposed to factors - i.e., regulatory - which are not of a strictly economic nature. This finding highlights the need to consider different explanatory variables and models for gasoline and diesel consumption, and to go further in the research. Finally, we find that traditional estimation procedures, such as fixed and random effect estimators, produce important differences with respect to system-GMM, which may even change policy recommendations.

Suggested Citation

  • Rosa M. Gonz lez-Marrero & Rosa M. Lorenzo-Alegr a & Gustavo A. Marrero, 2012. "A Dynamic Model for Road Gasoline and Diesel Consumption: An Application for Spanish Regions," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 201-209.
    • Handle: RePEc:eco:journ2:2012-04-1
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijeep/article/download/270/150
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijeep/article/view/270/150
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Xavier Labandeira Villot & Ángel López Nicolás, 2002. "La imposición de los carburantes de automoción en España: Algunas observaciones teóricas y empíricas," Hacienda Pública Española / Review of Public Economics, IEF, vol. 160(1), pages 177-210, march.
    2. Stephen Bond & Anke Hoeffler & Jonathan Temple, 2001. "GMM Estimation of Empirical Growth Models," Economics Papers 2001-W21, Economics Group, Nuffield College, University of Oxford.
    3. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    4. Sterner, Thomas, 2007. "Fuel taxes: An important instrument for climate policy," Energy Policy, Elsevier, vol. 35(6), pages 3194-3202, June.
    5. Nagy Eltony, M., 1996. "Demand for gasoline in the GCC: an application of pooling and testing procedures," Energy Economics, Elsevier, vol. 18(3), pages 203-209, July.
    6. Daniel J. Graham & Stephen Glaister, 2002. "The Demand for Automobile Fuel: A Survey of Elasticities," Journal of Transport Economics and Policy, University of Bath, vol. 36(1), pages 1-25, January.
    7. Chandrasiri, Sunil, 2006. "Demand for road-fuel in a small developing economy: The case of Sri Lanka," Energy Policy, Elsevier, vol. 34(14), pages 1833-1840, September.
    8. Puller, Steven L. & Greening, Lorna A., 1999. "Household adjustment to gasoline price change: an analysis using 9 years of US survey data," Energy Economics, Elsevier, vol. 21(1), pages 37-52, February.
    9. Richard Blundell & Stephen Bond & Frank Windmeijer, 2000. "Estimation in dynamic panel data models: improving on the performance of the standard GMM estimator," IFS Working Papers W00/12, Institute for Fiscal Studies.
    10. Holtz-Eakin, Douglas & Selden, Thomas M., 1995. "Stoking the fires? CO2 emissions and economic growth," Journal of Public Economics, Elsevier, vol. 57(1), pages 85-101, May.
    11. Ross Levine & Norman Loayza & Thorsten Beck, 2002. "Financial Intermediation and Growth: Causality and Causes," Central Banking, Analysis, and Economic Policies Book Series, in: Leonardo Hernández & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.),Banking, Financial Integration, and International Crises, edition 1, volume 3, chapter 2, pages 031-084, Central Bank of Chile.
    12. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    13. Huang, Bwo-Nung & Hwang, M.J. & Yang, C.W., 2008. "Causal relationship between energy consumption and GDP growth revisited: A dynamic panel data approach," Ecological Economics, Elsevier, vol. 67(1), pages 41-54, August.
    14. Polemis, Michael L., 2006. "Empirical assessment of the determinants of road energy demand in Greece," Energy Economics, Elsevier, vol. 28(3), pages 385-403, May.
    15. Marrero, Gustavo A., 2010. "Greenhouse gases emissions, growth and the energy mix in Europe," Energy Economics, Elsevier, vol. 32(6), pages 1356-1363, November.
    16. Stephen Bond & Anke Hoeffler, 2001. "GMM Estimation of Empirical Growth Models," Economics Series Working Papers 2001-W21, University of Oxford, Department of Economics.
    17. Gilbert E. Metcalf, 2008. "An Empirical Analysis of Energy Intensity and Its Determinants at the State Level," The Energy Journal, , vol. 29(3), pages 1-26, July.
    18. Baltagi, Badi H. & Griffin, James M., 1997. "Pooled estimators vs. their heterogeneous counterparts in the context of dynamic demand for gasoline," Journal of Econometrics, Elsevier, vol. 77(2), pages 303-327, April.
    19. Banfi, Silvia & Filippini, Massimo & Hunt, Lester C., 2005. "Fuel tourism in border regions: The case of Switzerland," Energy Economics, Elsevier, vol. 27(5), pages 689-707, September.
    20. Tapio, Petri & Banister, David & Luukkanen, Jyrki & Vehmas, Jarmo & Willamo, Risto, 2007. "Energy and transport in comparison: Immaterialisation, dematerialisation and decarbonisation in the EU15 between 1970 and 2000," Energy Policy, Elsevier, vol. 35(1), pages 433-451, January.
    21. Romero-Jordán, Desiderio & del Río, Pablo & Jorge-García, Marta & Burguillo, Mercedes, 2010. "Price and income elasticities of demand for passenger transport fuels in Spain. Implications for public policies," Energy Policy, Elsevier, vol. 38(8), pages 3898-3909, August.
    22. Halkos, George E., 2003. "Environmental Kuznets Curve for sulfur: evidence using GMM estimation and random coefficient panel data models," Environment and Development Economics, Cambridge University Press, vol. 8(4), pages 581-601, October.
    23. Richard Schmalensee & Thomas M. Stoker & Ruth A. Judson, 1998. "World Carbon Dioxide Emissions: 1950-2050," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 15-27, February.
    24. Bentzen, Jan, 1994. "An empirical analysis of gasoline demand in Denmark using cointegration techniques," Energy Economics, Elsevier, vol. 16(2), pages 139-143, April.
    25. Baltagi, Badi H. & Griffin, James M., 1983. "Gasoline demand in the OECD : An application of pooling and testing procedures," European Economic Review, Elsevier, vol. 22(2), pages 117-137, July.
    26. Ruth A. Judson & Richard Schmalensee & Thomas M. Stoker, 1999. "Economic Development and the Structure of the Demand for Commercial Energy," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 29-57.
    27. Dahl, Carol & Sterner, Thomas, 1991. "Analysing gasoline demand elasticities: a survey," Energy Economics, Elsevier, vol. 13(3), pages 203-210, July.
    28. Kayser, Hilke A., 2000. "Gasoline demand and car choice: estimating gasoline demand using household information," Energy Economics, Elsevier, vol. 22(3), pages 331-348, June.
    29. Alves, Denisard C. O. & De Losso da Silveira Bueno, Rodrigo, 2003. "Short-run, long-run and cross elasticities of gasoline demand in Brazil," Energy Economics, Elsevier, vol. 25(2), pages 191-199, March.
    30. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    31. Zervas, Efthimios, 2006. "CO2 benefit from the increasing percentage of diesel passenger cars. Case of Ireland," Energy Policy, Elsevier, vol. 34(17), pages 2848-2857, November.
    32. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
    33. Belhaj, Mohammed, 2002. "Vehicle and fuel demand in Morocco," Energy Policy, Elsevier, vol. 30(13), pages 1163-1171, October.
    34. Shioji, Etsuro, 2001. "Public Capital and Economic Growth: A Convergence Approach," Journal of Economic Growth, Springer, vol. 6(3), pages 205-227, September.
    35. Mazzarino, Marco, 2000. "The economics of the greenhouse effect: evaluating the climate change impact due to the transport sector in Italy," Energy Policy, Elsevier, vol. 28(13), pages 957-966, November.
    36. Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January.
    37. González, Rosa Marina & Marrero, Gustavo A., 2012. "Induced road traffic in Spanish regions: A dynamic panel data model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 435-445.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Siti Indati Mustapa & Hussain Ali Bekhet, 2015. "Investigating Factors Affecting CO2 Emissions in Malaysian Road Transport Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 5(4), pages 1073-1083.
    2. Bakhat, Mohcine & Labandeira, Xavier & Labeaga, José M. & López-Otero, Xiral, 2017. "Elasticities of transport fuels at times of economic crisis: An empirical analysis for Spain," Energy Economics, Elsevier, vol. 68(S1), pages 66-80.
    3. Marrero, Ángel S. & Marrero, Gustavo A. & González, Rosa Marina & Rodríguez-López, Jesús, 2021. "Convergence in road transport CO2 emissions in Europe," Energy Economics, Elsevier, vol. 99(C).
    4. Wadud, Zia, 2016. "Diesel demand in the road freight sector in the UK: Estimates for different vehicle types," Applied Energy, Elsevier, vol. 165(C), pages 849-857.
    5. Kamyabi, Najmeh & Chidmi, Benaissa, 2022. "Gasoline demand in the United States: An asymmetric economic analysis," The Journal of Economic Asymmetries, Elsevier, vol. 26(C).
    6. Bergantino, Angela Stefania & Intini, Mario & Perdiguero, Jordi, 2020. "Pay cycles and fuel price: a quasi experimental approach," The Warwick Economics Research Paper Series (TWERPS) 1288, University of Warwick, Department of Economics.
    7. Mohcine Bakhat & José M. Labeaga & Xavier Labandeira & Xiral Lñpez, 2013. "Economic Crisis and Elasticities of Car Fuels: Evidence for Spain," Working Papers fa15-2013, Economics for Energy.
    8. Barla, Philippe & Gilbert-Gonthier, Mathieu & Kuelah, Jean-René Tagne, 2014. "The demand for road diesel in Canada," Energy Economics, Elsevier, vol. 43(C), pages 316-322.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rosa M. González-Marrero & Rosa M. Lorenzo-Alegría & Gustavo A. Marrero, 2011. "Gasoline and Diesel Consumption for Road Transport in Spain: a Dynamic Panel Data Approach," Economic Reports 04-2011, FEDEA.
    2. Marrero, Gustavo A., 2010. "Greenhouse gases emissions, growth and the energy mix in Europe," Energy Economics, Elsevier, vol. 32(6), pages 1356-1363, November.
    3. González, Rosa Marina & Marrero, Gustavo A., 2012. "Induced road traffic in Spanish regions: A dynamic panel data model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 435-445.
    4. Scott, K. Rebecca, 2011. "Demand and Price Volatility: Rational Habits in International Gasoline Demand," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2q87432b, Department of Agricultural & Resource Economics, UC Berkeley.
    5. Scott, K. Rebecca, 2015. "Demand and price uncertainty: Rational habits in international gasoline demand," Energy, Elsevier, vol. 79(C), pages 40-49.
    6. Bakhat, Mohcine & Labandeira, Xavier & Labeaga, José M. & López-Otero, Xiral, 2017. "Elasticities of transport fuels at times of economic crisis: An empirical analysis for Spain," Energy Economics, Elsevier, vol. 68(S1), pages 66-80.
    7. Santos, Gervásio F., 2013. "Fuel demand in Brazil in a dynamic panel data approach," Energy Economics, Elsevier, vol. 36(C), pages 229-240.
    8. Mohcine Bakhat & Jaume Roselló, 2011. "Tourism Induced Contribution to Diesel Oil and Gasoline Consumption," Working Papers 05-2011, Economics for Energy.
    9. González, Rosa Marina & Marrero, Gustavo A., 2012. "The effect of dieselization in passenger cars emissions for Spanish regions: 1998–2006," Energy Policy, Elsevier, vol. 51(C), pages 213-222.
    10. Mohcine Bakhat & José M. Labeaga & Xavier Labandeira & Xiral Lñpez, 2013. "Economic Crisis and Elasticities of Car Fuels: Evidence for Spain," Working Papers fa15-2013, Economics for Energy.
    11. Marrero, Gustavo A. & Rodríguez, Juan G., 2013. "Inequality of opportunity and growth," Journal of Development Economics, Elsevier, vol. 104(C), pages 107-122.
    12. Jimy Ferrer Carbonell & Roberto Escalante Semerena, 2014. "Demanda de gasolina en la zona metropolitana del Valle de México: análisis empírico de la reducción del subsidio," Revista de Economía del Rosario, Universidad del Rosario, June.
    13. Liobikienė, Genovaitė & Butkus, Mindaugas, 2017. "Environmental Kuznets Curve of greenhouse gas emissions including technological progress and substitution effects," Energy, Elsevier, vol. 135(C), pages 237-248.
    14. Gründler, Klaus & Scheuermeyer, Philipp, 2015. "Income inequality, economic growth, and the effect of redistribution," W.E.P. - Würzburg Economic Papers 95, University of Würzburg, Department of Economics.
    15. Fotis, Panagiotis & Karkalakos, Sotiris & Asteriou, Dimitrios, 2017. "The relationship between energy demand and real GDP growth rate: The role of price asymmetries and spatial externalities within 34 countries across the globe," Energy Economics, Elsevier, vol. 66(C), pages 69-84.
    16. Miguel Rodríguez & Yolanda Pena-Boquete, 2013. "Mishandling carbon intensities," Working Papers 1302, Universidade de Vigo, Departamento de Economía Aplicada.
    17. Maurice J.G. Bun & Sarafidis, V., 2013. "Dynamic Panel Data Models," UvA-Econometrics Working Papers 13-01, Universiteit van Amsterdam, Dept. of Econometrics.
    18. González, Rosa Marina & Marrero, Gustavo A. & Rodríguez-López, Jesús & Marrero, Ángel S., 2019. "Analyzing CO2 emissions from passenger cars in Europe: A dynamic panel data approach," Energy Policy, Elsevier, vol. 129(C), pages 1271-1281.
    19. Vu, Khuong M & Asongu, Simplice, 2020. "Backwardness advantage and economic growth in the information age: A cross-country empirical study," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    20. Maurice J. G. Bun & Frank Windmeijer, 2010. "The weak instrument problem of the system GMM estimator in dynamic panel data models," Econometrics Journal, Royal Economic Society, vol. 13(1), pages 95-126, February.

    More about this item

    Keywords

    Fuel consumption; Road transport; Dynamic Panel Data model; GMM estimates;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O56 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Oceania

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2012-04-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.