Skip to main content

The Demand for and the Supply of Fuel Efficiency in Models of Industrial Organisation

The full text article is not available for purchase.

The publisher only permits individual articles to be downloaded by subscribers.

This report organises and discusses empirical estimates of the effects of fuel prices and fuel emissions standards on consumer and firm behaviour. Model‐free estimates are only briefly touched upon. The focus is on results based on explicit models, taken mostly from the industrial organisation literature. First, studies are reviewed that identify the willingness to pay for fuel efficiency using static and dynamic models of vehicle demand. Next, the fact that firms will adjust their product portfolios and the characteristics of the vehicles they offer is taken explicitly into account. These decisions will have an impact on the choice set from which consumer demand is estimated and on the trade‐off that consumers face between fuel efficiency and other desirable characteristics. Finally, models are discussed where firms choose to invest in innovations to achieve fuel efficiency gains without sacrificing characteristics.
No References
No Citations
No Supplementary Data
No Article Media
No Metrics

Document Type: Review Article

Publication date: 01 December 2010

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more