The responsiveness of fuel demand to gasoline price change in passenger transport: a case study of Saudi Arabia

摘要: Empirical estimates of fuel demand changes to price variation are based on historical consumption and prices, can be applied as a single point estimate wide range movements. However, if prices set outside the boundaries changes, policymakers may concerned validity empirically assessed elasticity. We developed transport model provide techno-economic long-run elasticity demand. It incorporates consumers’ choices result several factors, including substitutes, available modes, income, value time magnitude change. Our findings from application this Saudi Arabia show that have confidence empirical broadly valid, even for large move variations. In general, gasoline in is inelastic due lack modal substitutes. our approach suggests response become more pronounced when change increases. The cross-price diesel not constant. Demand will increase raised significantly. jet-fuel use negligible.