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.