The Role of Regulation, Fiscal Incentives and Changes in Tastes in the Diffusion of Unleaded Petrol

Posted: 17 Jul 2000

See all articles by P. Stoneman

P. Stoneman

University of Warwick Business School

G. Battisti

Coventry University

Abstract

This paper analyses the diffusion of unleaded petrol in the UK. Changes in the market share of unleaded fuel are the result of changes in the composition of the car stock and changes in the choice of fuel given the car stock. We find that fuel type choices have been mainly driven by changes in tastes and learning as opposed to changes in relative prices induced by fiscal incentives. However car stock composition effects dominate the diffusion process and we find that through this route regulatory changes have made major contributions to changes in the market share of unleaded fuel.

JEL Classification: L71, Q40

Suggested Citation

Stoneman, P. and Battisti, G., The Role of Regulation, Fiscal Incentives and Changes in Tastes in the Diffusion of Unleaded Petrol. Oxford Economic Papers, Vol. 52, No. 2, pp. 326-356, 2000, Available at SSRN: https://ssrn.com/abstract=228563

P. Stoneman (Contact Author)

University of Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom
+44 24 7652 3038 (Phone)
+44 24 7652 3719 (Fax)

G. Battisti

Coventry University

Priory Street
School of Mathematical and Information Sciences
Coventry CV1 5FB
United Kingdom

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