Gasoline, Diesel Fuel and Jet Fuel Demand in South Africa

Studies in Economics and Econometrics 36(1): 43-78, 2012

36 Pages Posted: 3 Dec 2014  

Willem H. Boshoff

Stellenbosch University - Department of Economics

Date Written: 2012

Abstract

The paper investigates the price and income elasticity of gasoline (petrol), diesel and jet fuel demand in South Africa using autoregressive distributed lag (ARDL) models. We compare elasticity estimates for 1982Q1-2010Q4 with estimates for 1998Q1-2010Q4. Price and income elasticity estimates for gasoline remain unchanged compared to previous estimates and robust across smaller sub-periods. Similar to recent findings for other developing countries, income is the dominant driver of South African diesel demand even when controlling for the increased number of diesel vehicles. Similarly, income dominates jet fuel demand, a finding that is robust to controls for international tourist departures and is consistent with international findings.

Keywords: fuel demand; ARDL; time-series; South Africa; gasoline; diesel; jet fuel

JEL Classification: Q41

Suggested Citation

Boshoff, Willem H., Gasoline, Diesel Fuel and Jet Fuel Demand in South Africa (2012). Studies in Economics and Econometrics 36(1): 43-78, 2012. Available at SSRN: https://ssrn.com/abstract=2533136

Willem H. Boshoff (Contact Author)

Stellenbosch University - Department of Economics ( email )

South Africa
+27218082387 (Phone)
+27218084637 (Fax)

HOME PAGE: http://www.ekon.sun.ac.za/wboshoff

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