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Impact of economic and non‐economic factors on gasoline demand: a varying parameter model for S weden and the UK
Author(s) -
Karimu Amin
Publication year - 2014
Publication title -
opec energy review
Language(s) - English
Resource type - Journals
eISSN - 1753-0237
pISSN - 1753-0229
DOI - 10.1111/opec.12035
Subject(s) - gasoline , economics , recession , econometrics , agricultural economics , macroeconomics , engineering , waste management
This paper investigated the impact of price, income and non‐economic factors on gasoline demand using a structural time series model. The results indicated that non‐economic factors did have an impact on gasoline demand and also one of the largest contributors to changes in gasoline demand in both countries, especially after the 1990s. The results from the time‐varying parameter model indicated that both price and income elasticities were varying over time, but the variations were insignificant for both S weden and the UK . The estimated gasoline trend also showed a similar pattern for the two countries, increasing continuously up to 1990 and taking a downturn thereafter.