scholarly journals Gasoline Taxes and Consumer Behavior

2014 ◽  
Vol 6 (4) ◽  
pp. 302-342 ◽  
Author(s):  
Shanjun Li ◽  
Joshua Linn ◽  
Erich Muehlegger
Keyword(s):  
Gasoline Prices ◽  
Government Revenue ◽  
Gasoline Price ◽  
Consumer Responses ◽  
Gasoline Tax ◽  
Retail Gasoline ◽  
Gasoline Taxes ◽  
Tax Changes ◽  
Automobile Use ◽  
Robust Evidence

Gasoline taxes can be employed to correct externalities from automobile use and to raise government revenue. Our understanding of the optimal gasoline tax and the efficacy of existing taxes is largely based on empirical analysis of consumer responses to gasoline price changes. In this paper, we examine directly how gasoline taxes affect gasoline consumption as distinct from tax-inclusive retail gasoline prices. We find robust evidence that consumers respond more strongly to gasoline tax changes under a variety of model specifications. We discuss two potential reasons for our main findings as well as their implications. (JEL D12, H21, H25, H31, L71, Q35)

Implication of Replacing the Federal and State Fuel Taxes with a National Vehicle Miles Traveled Tax

2018 ◽  
Vol 2672 (4) ◽  
pp. 32-42
Author(s):  
Yiwei Wang ◽  
Qing Miao
Keyword(s):  
Gasoline Prices ◽  
Tax Revenue ◽  
Vehicle Miles Traveled ◽  
Gasoline Tax ◽  
Tax Revenues ◽  
Empirical Estimates ◽  
Significant Difference ◽  
Fuel Taxes ◽  
The Difference ◽  
Gasoline Taxes

A vehicle miles traveled (VMT) tax is often proposed to replace fuel taxes for financing the nation’s highway and road network. In this paper, we investigate households’ driving response to driving cost changes depending on their vehicle choices. Using the empirical estimates, we simulate the vehicle usage, tax burdens, and total tax revenues generated under a possible nationwide revenue-neutral flat VMT tax. Our results confirm that, compared with the current gasoline tax, a revenue-neutral flat VMT tax can be a more stable tax revenue source. We estimate that a 50% increase in average miles per gallon would lead to a 28% decrease in the total revenues raised by the current gasoline tax, while the same amount of increase in fuel economy would increase the VMT tax revenues by 4.4 % (all relative to the 2009 baseline). In the meantime, we find no significant difference between the two types of tax in their total revenues, when the pre-tax gasoline prices fluctuate by different magnitudes. A VMT tax would be slightly more regressive than the gasoline tax, but the difference is negligible. Overall, our simulation shows that VMT tax could serve as a viable alternative to gasoline taxes.

scholarly journals The Effects of Gasoline Prices on Bus Ridership for Different Types of Transit Systems

2012 ◽  
Vol 47 (3) ◽  
Author(s):  
Jeremy Mattson
Keyword(s):  
Great Plains ◽  
Aggregate Data ◽  
Gasoline Prices ◽  
Delayed Effect ◽  
Gasoline Price ◽  
Transit Systems ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Different Types ◽  
Lag Model

This study estimates the effects of gas prices on bus ridership for different types of transit systems. Because the price of gas can have a delayed effect on the demand for transit, a dynamic polynomial distributed lag model is utilized which measures short- and longer-run effects. The model is first applied to aggregate data for cities of different sizes and then to three specific small urban and rural transit systems in the Upper Great Plains. The results show that bus ridership is fairly inelastic with respect to gasoline price. Most of the estimated elasticities are in the range of 0.08 to 0.22, with two estimates being as high as 0.5.

scholarly journals Time-Series Forecasting Models for Gasoline Prices in China

2018 ◽  
Vol 10 (12) ◽  
pp. 43
Author(s):  
Feng Xu ◽  
Mohamad Sepehri ◽  
Jian Hua ◽  
Sergey Ivanov ◽  
Julius N. Anyu
Keyword(s):  
Time Series ◽  
Arima Model ◽  
Time Series Forecasting ◽  
Gasoline Prices ◽  
Support Vector ◽  
Grey System ◽  
Gasoline Price ◽  
Forecasting Models ◽  
Long Run ◽  
Environmental Protection Policies

Accurate prediction of gasoline price is important for the automobile makers to adjust designs and productions as well as marketing plans of their products. It is also necessary for government agencies to set effective inflation monitoring and environmental protection policies. To predict future levels of the gasoline price, due to difficulties of obtaining accurate estimates of influential external factors, data driven time-series forecasting models thus become more suitable given the convenience and practicability they are providing. In this paper, five popular time-series forecasting models, i.e., ARIMA-GARCH, exponential smoothing, grey system, neural network, and support vector machines models, are applied to predict gasoline prices in China. Comparing the performances of these models, it is noted that for this specific time series, a parsimonious ARIMA model performs the best in predicting the gasoline prices for a short time horizon, while for the medium length and long run the SVR and FNN models outperforms others respectively.  

Gasoline in the Voter’s Pocketbook: Driving Times to Work and the Electoral Implications of Gasoline Price Fluctuations

2021 ◽  
pp. 1532673X2110434
Author(s):  
Sung Eun Kim ◽  
Joonseok Yang
Keyword(s):  
United States ◽  
Economic Burden ◽  
Presidential Election ◽  
The United States ◽  
Gasoline Prices ◽  
Election Campaigns ◽  
Gasoline Price ◽  
Electoral Accountability ◽  
Gasoline Consumption ◽  
Price Increases

Gasoline prices are often a heated topic during presidential election campaigns in the United States. Yet, presidents have limited control over gasoline prices. Do voters reward or punish the president for changes in gasoline prices? Why might voters blame the president for an outcome beyond direct presidential control? This study addresses these questions by testing the effects of gasoline prices on pocketbook retrospection by voters. To capture the personal economic burden of gasoline prices, we rely on average driving times to work, given the inelastic nature of gasoline consumption for commuting. The results provide evidence for pocketbook voting: constituencies with longer average driving times to work are more likely to hold the president accountable for gasoline price increases. These findings have broader implications regarding electoral accountability and rationality in voting.

What matters for consumer sentiment in the euro area? World crude oil price or retail gasoline price?

2021 ◽  
pp. 105743
Author(s):  
Sofronis Clerides ◽  
Styliani-Iris Krokida ◽  
Neophytos Lambertides ◽  
Dimitris Tsouknidis
Keyword(s):  
Crude Oil ◽  
Euro Area ◽  
Oil Price ◽  
Consumer Sentiment ◽  
Crude Oil Price ◽  
Gasoline Price ◽  
Retail Gasoline ◽  
What Matters

Taxation in the Aviation Industry: Insights and Challenges

2019 ◽  
Vol 2673 (9) ◽  
pp. 666-673 ◽  
Author(s):  
Quinton White ◽  
David R. Agrawal ◽  
Jonathan W. Williams
Keyword(s):  
Vital Role ◽  
Aviation Industry ◽  
Government Revenue ◽  
Tax Changes ◽  
Over Time

Taxation in the aviation industry has evolved considerably over the last 25 years. Despite the vital role aviation and airports play in efficiently moving goods and people, the effect of taxation in this industry is understudied. Understanding how passengers and carriers respond to taxes and government fees is crucial to efficiently raising government revenue. After an overview of how taxation has evolved in the industry, this paper estimates how fares adjust in response to tax changes. Exploiting variation in taxes across similar routes and over time, the results suggest taxes are over-shifted to consumers (i.e., a $1 increase in taxes results in more than a $1 increase in the total fare). The paper discusses potential explanations for this result: the nature of competition in the industry and the propagation of taxes within a network.

Competition and Retail Gasoline Prices

1959 ◽  
Vol 41 (2) ◽  
pp. 119 ◽  
Author(s):  
S. Morris Livingston ◽  
Theodore Levitt
Keyword(s):  
Gasoline Prices ◽  
Retail Gasoline
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