Estimating the price elasticity of fuel demand with stated preferences derived from a situational approach

Hössinger, Reinhard; Link, Christoph; Sonntag, AxelORCID: and Stark, Juliane (2017) Estimating the price elasticity of fuel demand with stated preferences derived from a situational approach. Transportation Research Part A: Policy and Practice, 103, pp. 154-171.

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Abstract or Table of Contents

An evidence-based policy debate about future fuel demand requires reliable estimates for fuel price elasticities. Such predictions are often based on revealed preference (RP) data. However, this procedure will only yield reliable results in the absence of severe structural discontinuities. In order to overcome this potential limitation we used a situational stated preference (SP) survey to estimate the response to hypothetical fuel price changes beyond the scope of previous observations. We elicit fuel price elasticities for price increases up to four Euros per liter and find that the situational approach predicts the actual responses to previously observed fuel price changes very well. We conclude that applying a situational approach is particularly useful, if behavioral predictions for unprecedented (non-monetary) policy interventions or supply side shocks are of interest that go beyond the reach of standard RP approaches. (Author's abstract)

Item Type: Article in Academic Journal
Keywords: Price elasticities, Fuel demand, Stated preference, Choice experiment, Discrete choice modelling
Research Units: Divisions > Former Research Units (until 2020) > Insight Austria
Status: Published
Date Deposited: 17 Jan 2018 11:12
Last Modified: 09 Jan 2019 12:16
Identification Number or DOI: 10.1016/j.tra.2017.06.001
ISSN: 0965-8564

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