Fuel Efficiency Versus Fuel Substitution in the Transport Sector : An Econometric Analysis
The transport sector offers limited options to reduce greenhouse gas emissions as compared with other sectors, such as power generation and industrial sectors. To understand the potential reduction of energy consumption and associated emissions thr...
| Main Authors: | , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/451701495467642019/Fuel-efficiency-versus-fuel-substitution-in-the-transport-sector-an-econometric-analysis http://hdl.handle.net/10986/26841 |
| Summary: | The transport sector offers limited
options to reduce greenhouse gas emissions as compared with
other sectors, such as power generation and industrial
sectors. To understand the potential reduction of energy
consumption and associated emissions through fuel
substitution or transportation service demand reduction,
this study estimates own- and cross-price elasticities of
various fuels used for transportation. The analysis shows,
like many previous studies, that an increase in fuel prices
would not have a large effect on transport sector carbon
dioxide emissions, due to limited substitution possibilities
among fuels for transportation. The study also finds that
price-induced changes that lead to an increase in the rate
of adoption of fuel-efficient vehicles would be more
effective than a policy to cause fuel substitution. |
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