Doing My Part to Save the Global Commons? Environmental Awareness and Voluntary Fuel Economization in Gasoline Markets
39 Pages Posted: 27 Mar 2009 Last revised: 25 May 2013
Date Written: March 26, 2009
Information about collectively-created problems, such as air pollution, may elicit voluntary changes to consumer behavior that at least partially offset the cause of the problem. We show that increases in information about climate change are associated with statistically and economically significant decreases in expenditure on gasoline, controlling for gasoline prices and income. We simultaneously provide updated estimates of the short run price and income elasticities of demand for gasoline in the US, utilizing recent weekly gasoline consumption and price data and spatially-delineated supply side disruptions due to hurricanes as an instrument for price.
Keywords: climate change, global warming, gasoline demand, voluntary protection of the commons, environmentalism, environmental awareness
JEL Classification: Q00, Q25, Q54, Q58, H41
Suggested Citation: Suggested Citation