Abstract
It is shown that the relative demands for gasoline and diesel fuels are price-responsive. Given the differing emissions-based externalities from these two fuel types, it is contended that discriminatory fuel duty might be a means to reduce these externalities. Results are derived from an Almost Ideal Demand System with time-varying technological progress, estimated using a bootstrap procedure given the nonnormalities and relative small sample sizes.
Original language | English |
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Pages (from-to) | 540-544 |
Number of pages | 5 |
Journal | Applied Economics Letters |
Volume | 20 |
Issue number | 6 |
DOIs | |
Publication status | Published - 1 Apr 2013 |
Externally published | Yes |
Keywords
- AIDS model
- technology biases
- time-varying parameter
ASJC Scopus subject areas
- Economics and Econometrics