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Open Access Publications from the University of California

The Elasticity of Demand for Gasoline in China

  • Author(s): Lin, C.-Y. (Cynthia);
  • Zeng, Jieyin (Jean)
  • et al.

This paper estimates the price and income elasticities of demand for gasoline in China. Our estimates of the intermediate-run price elasticity of gasoline demand range between -0.497 and -0.196, and our estimates of the intermediate-run income elasticity of gasoline demand range between 1.01 and 1.05. We also extend previous studies to estimate the vehicle miles traveled (VMT) elasticity and obtain a range from -0.882 to -0.579.

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