The Demand for Energy Used in Transport

Abstract
This paper uses recent data to measure the role of income and relative prices in determining the demand for four types of energy used in transport in Western Australia. The method relies on the construction of Divisia-type indices of the volume and price of energy. The short-term own-price elasticities were found to be quite low with the highest (-0.13) for Motor Spirit. Short-term income elasticities were found to be higher and in the range 0.25 to 0.37.

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