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Motor Vehicle Fuel Efficiency and Traffic Fatalities

Robert B. Noland

Year: 2004
Volume: Volume 25
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol25-No4-1
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Abstract:
This paper analyzes the impact of changes in average fuel efficiency on traffic-related fatalities while controlling for other confounding effects. These other effects include population, per capita income, per capita alcohol consumption, existence of safety-belt laws (and safety-belt usage), and age cohorts in the population. State-level time-series data over 24 years is used with a fixed effect negative binomial regression model that accounts for both the distributional properties of accident count data and heterogeneity. Other studies of this issue have not used either panel data in this way nor have they used appropriate statistical methods for count data. Results vary with the selection of the time series used. Overall results suggest that while there may have been an association between fleet fuel efficiency improvements and traffic fatalities in the 1970s, this has largely disappeared. There are suggestions that variance in the composition of the vehicle fleet may have adverse safety impacts.



Gasoline Demand with Heterogeneity in Household Responses

Zia Wadud, Daniel J. Graham and Robert B. Noland

Year: 2010
Volume: Volume 31
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol31-No1-3
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Abstract:
Fuel demand elasticities to determine consumer responses to tax increases or price shocks are typically based on aggregate data. The literature generally provides one elasticity estimate for each country, assuming similar response for all households. However, it is possible that different households can have different responses to the same stimuli depending on the household characteristics. Assuming a single elasticity for all households may fail to capture the detailed distributional effect on different socio-economic groups, which is often needed to fully understand the impact of fuel tax measures. This paper presents results from a household level gasoline demand model which accommodates variation in price and income elasticity with increasing income as well as for different socio-economic characteristics in the USA. We find substantial heterogeneity in price and income elasticities based on demographic groupings and income groups. Results of a distributional analysis for a gasoline tax are also presented using the heterogeneous responses.





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