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Price and Income Elasticities of Gasoline Demand in Iran: Using Static, ECM, and  Dynamic Models in Short, Intermediate, and Long Run

Price and Income Elasticities of Gasoline Demand in Iran: Using Static, ECM, and Dynamic Models in Short, Intermediate, and Long Run

Price and income elasticities of gasoline demand show whether the price policy, pursued by the Iranian government, can decrease the high gasoline consumption sufficiently or not. Since the two oil price shocks in 1970 and 1973, interest in the study of oil products demand has increased con- siderably, especially on gasoline. High gasoline consumption is a serious crisis in Iran, posing economically, politically, and environmentally threats. In this study, the elasticities are estimated over three intervals, short run, intermediate run, and long run in Iran during 1976-2010, by put- ting the estimates of Error Correction Model (ECM), static model, and dynamic model in an in- creasing order, respectively. The short run, intermediate run, and long run price elasticities are − 0.1538, − 0.1618, and − 0.3612 and the corresponding income elasticities are 0.2273 - 0.3581, 0.4636, and 0.7284, respectively. Not only do these elasticities imply that the gasoline demand is price and income inelastic but also the adjustment velocity, estimated by ECM, is a low point at − 0.1942. Based on the estimations, the gasoline demand responds to the changes of price and in- come slightly and slowly. Therefore, policy makers should develop more strategies to reduce gasoline consumption, for example, substitute goods, public transportation systems, and envi- ronmental standards settings.

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A Semiparametric Analysis of Gasoline Demand in the US: Reexamining The Impact of Price

A Semiparametric Analysis of Gasoline Demand in the US: Reexamining The Impact of Price

Second, we use the partially linear additive model (hereinafter PLAM) as a reduced form model for the gasoline demand. PLAM is a semiparametric specification in the sense that it involves both a nonparametric and a parametric (linear) part. Compared to the partially linear model proposed by Robinson (1988) and applied to gasoline demand by Schmalensee and Stoker (1999), the model assumes additivity of the nonparametric com- ponent. Introducing this assumption delivers more efficient estimates of the parametric effects and easier interpretation of the relationship among the variables that enter non- parametrically. In addition, The PLAM set-up also allows interactions among the vari- ables of the nonparametric part by incorporating them within the linear part. We estimate the model following the kernel-based approach proposed by Manzan and Zerom (2005). The resulting estimator of the linear parameters are root-n consistent and asymptotically normal distributed. A convenient feature of this estimator is that it is semiparametric efficient in the sense of Chamberlain (1992) (when the error is homoscedastic). This is an attractive feature compared to other kernel-based estimators (e.g., Fan et al., 1998; Fan and Li, 2003; and Moral and Rodriguez-Poo 2004). In our gasoline demand analysis, the linear part includes up to 20 demographic and location variables (these are mainly dummy and discrete variables) while the nonparametric part contains log price, log age and log income. The nonparametric treatment of the price effect is able to show that our vehicle-based gasoline price solves the implausible price effect that arises when the price provided in RTECS is used.

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The Systemic, Long run Relation among Gasoline Demand, Gasoline Price, Income, and Vehicle Ownership in OECD Countries: Evidence from Panel Cointegration and Causality Modeling

The Systemic, Long run Relation among Gasoline Demand, Gasoline Price, Income, and Vehicle Ownership in OECD Countries: Evidence from Panel Cointegration and Causality Modeling

While there has been a great deal of work devoted to estimating the price and income elasticities of gasoline demand, 1 only recently have studies paid attention to the stationarity properties of the data and tested for cointegration among the variables. Yet, highly trending, stock-based variables like income (GDP per capita), energy consumption, and vehicle stock are likely nonstationary—i.e., their mean, variance, and/or covariance with other variables change over time. When ordinary least squares (OLS) is performed on nonstationary variables, measures like R-squared and t-statistics are unreliable, and there is a serious risk of the estimated relationships being spurious. No gasoline demand study, to our knowledge,

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THE ESTIMATION OF THE AUTOMOTIVE FUEL DEMAND IN IRAN: ALMOST IDEAL DEMAND SYSTEM APPROACH

THE ESTIMATION OF THE AUTOMOTIVE FUEL DEMAND IN IRAN: ALMOST IDEAL DEMAND SYSTEM APPROACH

However, there are considerable studies about the estimation of demand elasticities of gasoline for the Iran. For instance, Khataie and Eghdami (2005) estimated of gasoline demand during 1980-2002 periods, they show that there is a weak relationship between price and demand for gasoline in Iran. Ismaeilniya (2000) and Chit Nice (2005) concluded the gasoline demand function is inelastic in both in the short term and long term. Another study by Khaksari and Bazdar Ardebili (2006) estimated demand for gasoline and diesel in the land transportation sector (roads and railways); they show that gasoline and diesel demand in the land transportation sector with regard to the fuel price variation has a low elasticity. This indicates that fuel demand decreases less than one percent when the fuel price increases one percent. Also fuel income elasticity in the land transportation sector is less than one unit that shows when added value increases one percent, fuel demand increases less than one percent in the country. Sobhani and Zarezade Mehrizi (2005) estimates of gasoline demand during 1979- 2003 period, they concludes that gasoline demand function is inelastic to price, and the gasoline consumption has a direct relationship with gross domestic product without oil, that the number the vehicles produced per year, that the urban population is an effective factor in demand for gasoline. Also Akhani (1999) estimated demand for transportation fuels in the transportation sector (roads and railways, air ways) using a simple OLS method ,during 1974-1995 , results indicate very low income and price elasticity for gasoline, but diesel income elasticity is relatively higher. Generally the cited studies suggest that Iranian Gasoline demand is inelastic with respect to price in the short and long run but larger in the long run.

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Price and Income Elasticities of Demand for Oil Products in African Member Countries of OPEC: A Cointegration Analysis

Price and Income Elasticities of Demand for Oil Products in African Member Countries of OPEC: A Cointegration Analysis

This paper analyses the demand for petroleum products in African member countries of OPEC namely Algeria, Angola, Libya and Nigeria over the period of 1980-2007. For this purpose, econometric models based on time series data are generated for individual products so as to capture product specific factors affecting demand. In doing so, the ARDL bounds testing approach to cointegration is applied to examine the long run relationship among the variables. Four specifications such as total petroleum product demand function, gasoline demand function, diesel demand function and kerosene demand functions have been estimated. The review of trends in the consumption and real prices of the various products suggest that demand for oil products has risen fast due to fast rise in income levels of individuals in these countries as compared to price level. Furthermore, results of estimation show mixed evidence about cointegration between the variables in all the countries studied. The evidence from the estimates show that the diesel demand specification provided satisfactory results in terms of producing expected signs than other specifications. The results for the kerosene model was the least satisfactory as most of the coefficients were found with unexpected signs. Finally the overall result indicates that demand for oil products are more responsive to changes in income than the real prices, both in the short and long run. This result is consistent with the previous studies on developing countries. Finally, the policy implication for result show the need for diversification, increase refining capacity and demand management policies in these countries to promote energy efficiency, conservation as well as discourage cross border smuggling of products and encourage private investment into the oil sector.

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Cointegration and the demand for gasoline

Cointegration and the demand for gasoline

Estimates with DEG are reported in column1 of Table-3. We have introduced an intercept dummy DUM8798 because without this dummy, tests for both serial correlation and non- normality of residuals were poor. 11 This dummy variable is 1 from 1987 to 1998 and zero at all other times. This was a period of political instability in Fiji. The issues surrounding the Fiji constitution were being challenged in the courts and subsequently a new constitution was drafted. The simple ADF test on the computed residuals with trend has been used as the cointegration test for all countries for uniformity, but where a technique specific test for cointegration is available it is shown in the last row of Table-3. The absolute value of the ADF test statistic (4.84) exceeds the absolute critical value (3.56) at the 5 % level and rejects the null of no cointegration. The estimates of income and price elasticities, which are all significant, are highly plausible and have the expected signs and within the range of estimates for various other countries summarized by Akinboade, Ziramba and Kumo (2008) in their Table-2. However, our estimates are closer to the estimates for South Africa by Cloete and Smit (1988). Gasoline demand in Fiji is inelastic with respect to income and relative price since the estimated elasticities are 0.429 and -0.244

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Microeconomic Gasoline Consumption Anomalies in Mexico: 1997-2007

Microeconomic Gasoline Consumption Anomalies in Mexico: 1997-2007

The objective of this research is to develop an econometric model that analyzes the behavior of gasoline consumption in Mexico between 1997 and 2007. January 1997 is the earliest period for which complete monthly data can be assembled and December 2007 still precedes most of the economic and financial difficulties that emanated out of the United States and affected Mexico during the most recent global recession. Income and price elasticities will be measured for the different product categories employed. Time series estimation techniques are utilized to obtain these estimates. Previous studies of gasoline demand for Mexico have focused on estimating demand and price elasticities for the Northern Border Region (Haro and Ibarrola, 1999; Ayala and Gutiérrez, 2004; Ibarra Salazar and Sotres Cervantes, 2008). Time series approaches have been shown to uncover interesting empirical aspects of gasoline demand in Mexico (Reyes et al., 2010). Employment of such an approach may yield helpful insights.

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Conversion of Gasoline Engine

Conversion of Gasoline Engine

During the operation of the engine, the metal particles from the machine elements, due to the wearing down of the engine, entered lubricating oil at a suspension state. According to the theory analysis, the amount of metal particles suspended in the lubricating oil is related to the wearing down level of machine elements. Therefore, the wearing down of the engine can be estimated by measuring the iron content in the oil residue in engine. The machine elements which are easy to wear down are in the cylinder wall and piston ring. In our study, the wearing down of engine operating on blended fuel was estimated by measuring the iron content in oil residue in the engine after a car had traveled a certain mileage. The Fig.(1.3, 1.4 & 1.5) was then compared with that in the engine burning gasoline. At the same time, the kinematic viscosity and the acid value of oil residue in the two cases were also tested in order to determine the corrosion of engine.

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Ethanol (Gasohol) From Corn to be used in Motor  Vechils With Benzen

Ethanol (Gasohol) From Corn to be used in Motor Vechils With Benzen

Ethanol's properties (as a fuel) have led to the development of dedicated engines for neat ethanol in Brazil. Initial efforts were conducted by the Centro de Tecnologia Aeronáutica (CTA) in São Paulo state, where most of the tests with engines running with ethanol-gasoline blend and straight ethanol were performed up to 1980. In the early 1980s, vehicles with neat-ethanol engines that could use hydrous ethanol became highly attractive to consumers, as the government had ensured the pump price of hydrous alcohol would be equivalent to 64.5% of the gasoline price. Sales of neat-ethanol powered vehicles exploded, and the market share occupied by these vehicles increased to more than 90% of all vehicle sales. The total fleet of neat-ethanol fueled vehicles at one point reached 5 million. Most of the service stations were equipped with two reservoirs (one for anhydrous ethanol, and the other for ethanol-gasoline blends at 20% to 25% ethanol). The lack of a guarantee of ethanol production to supply this expanding market became a critical issue, and in the early 1990s a shortage in ethanol production led to a serious crisis and a gradual abandonment of the use of neat-ethanol driven cars. There were other problems associated with neat-ethanol vehicles, including the problem of not being able to use them in neighboring countries or in regions of Brazil which did not have service stations capable of supplying pure ethanol.

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The Creation Of Data Pattern Of Kerosene-mixed Gasoline By Utilizing Gas Sensor And Fast Fourier Transform Method To Detect The Purity Of Gasoline

The Creation Of Data Pattern Of Kerosene-mixed Gasoline By Utilizing Gas Sensor And Fast Fourier Transform Method To Detect The Purity Of Gasoline

The research regarding the creation of data pattern of kerosene-mixed gasoline by using gas sensor has been conducted through the utilization of fast fourier transform (FFT) method. This research is aimed to create data pattern of both pure and kerosene-mixed gasoline. The composition of kerosene in gasoline is varied by 10%, 20%, 30%, 40%, and 50%. The FFT method test is conducted to create pattern from the detected gas. The sensor of TGS 2620 Gas has low sensitivity towards the change of steam/vapor of kerosene-mixed gasoline. The data sample of pure gasoline and kerosene-mixed gasoline have dominant frequency values that frequently occur in 17-31 frequency range, while the entire random samples that used are identified to have been mixed with kerosene.

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Performance Evaluation of Two Stroke Spark Ignition Engine with Catalytic Coated Cylinder Head with Alcohol Blended Gasoline over Conventional Gasoline Engine

Performance Evaluation of Two Stroke Spark Ignition Engine with Catalytic Coated Cylinder Head with Alcohol Blended Gasoline over Conventional Gasoline Engine

The exhaust gas temperature with pure gasoline operation was higher in both the versions of combustion chamber when compared with methanol blended gasoline operation. Gasoline has higher calorific value, releasing more amount of heat energy and hence heat exhausted was also more. Therefore, EGT was higher with gasoline in CE than CCE with same test fuel. Also, the latent heat of evaporation of methanol is higher, so it absorbs temperature from surroundings leading to drop in temperature of exhaust gases. As the calorific value of methanol blend is lower than calorific value of pure gasoline, the heat released by the blend is less and hence, the exhaust gas heat losses will also be less. Thus there is a reduction of heat loss through exhaust gases with copper coated engine with methanol blended gasoline over CE with pure gasoline.

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DOWNSIZING OF GASOLINE ENGINES

DOWNSIZING OF GASOLINE ENGINES

Downsizing is today considered as a promising way to increase fuel economy with a good cost to benefit ratio. The challenge is here to reduce the engine displacement volume while keeping the same performance in terms of torque and power than the initial larger engine, and simultaneously to ensure an improvement in engine efficiency. Downsizing of gasoline engine is already an industrial reality. During last years, several car makers have presented 1.8 l to 2.0 l turbocharged engines. The performances of these engines are typically the ones of naturally aspirated engines with 2.5 l displacement. The reduction of fuel consumption is typically about 10%. The second generation of downsized engines is today the object of extensive research. Target is to reduce by half the displacement of the engines and also to consider the downsizing of smaller engines than the upperclass engines with 2.5 l displacement or more. This paper explains the concept of downsizing using aturbocharger coupledwith gasoline direct injection and illustrates the potential of downsizing in the very near future.

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Lead Pollution in Iraqi Kurdistan Region

Lead Pollution in Iraqi Kurdistan Region

The second environmental hazard is caused by the large increase in oil production and refining in Kurdistan during the last few years. This is accompanied by a comparable increase in the production of Gasoline which is connected by an imminent increase in the consumed Tetra Ethyl Lead ( TEL ) which is used as an additive to the Gasoline in order to improve its qualities and to increase its octane number. The emitted lead to the air from this TEL after being used is proved to be as a very harmful and hazardous substance.

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EXPERIMENTAL INVESTIGATION ON HCCI (HOMOGENOUS CHARGE COMPRESSION IGNITION) COMBUSTION ENGINE FUELED WITH GASOLINE AND DEE BLEND

EXPERIMENTAL INVESTIGATION ON HCCI (HOMOGENOUS CHARGE COMPRESSION IGNITION) COMBUSTION ENGINE FUELED WITH GASOLINE AND DEE BLEND

This paper presents the findings of an experimental investigation on homogeneous charge compression ignition (HCCI) engine fuelled with gasoline and Di-ethyl-ether blend fuel. The experiments were conducted on a single- cylinder, four stroke, DI diesel engine modified to work in HCCI mode using 90% of gasoline in gasoline/DEE blend fuel (by volume) at a fixed engine speed of 1400 rpm. Factors that were investigated and compared with base diesel engine include brake thermal efficiency, combustion pressure, HRR, NOx, HC, CO, CO2, smoke and exhaust gas temperature. The combustion process has obvious two stage combustion characteristics. The results show that within the investigated blends the HCCI operation is possible in the load range from 3.25 bar to 5.27 bar.

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Re examining the Asymmetric Gasoline Pricing Mechanism in EU: A Panel Threshold Analysis

Re examining the Asymmetric Gasoline Pricing Mechanism in EU: A Panel Threshold Analysis

feathers ” hypothesis). 1 Moreover, past studies have been methodologically restrictive in the sense that the retail gasoline short-run responses, given an input (crude) cost shock, were attributed to crude oil fluctuations. These studies would therefore be biased since a gasoline asymmetric path is usually triggered by a minimum absolute increase in the cost of raw material such as crude oil (Godby et al, 2000).

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On the Examination of Competition in the Petroleum Industry: A Pooled Panel Threshold Analysis

On the Examination of Competition in the Petroleum Industry: A Pooled Panel Threshold Analysis

However, there is a prevailing issue of endogeneity. The latter is associated with the use of the exchange rate term which is treated as an endogenous covariate in our models. This could be explained by the fact that although it has been documented in the literature that exchange rate affects the level of retail gasoline prices (see among others Galeotti, 2003; Polemis, 2012; Polemis and Fotis, 2013) there is a possibility that the direction of causality might also be reversed. Moreover, it is almost certainly the case that ERPT and upstream pricing adjustment mechanism are not randomly determined among the EU-28 countries throughout the sample period, thus raising the concern that the coefficients of exchange rate and crude oil marker (Brent or New York spot gasoline prices) are biased.

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Study of Ethanol  Gasoline Blends for Powering MediumDuty Transportation SI Engine

Study of Ethanol Gasoline Blends for Powering MediumDuty Transportation SI Engine

M. Bahattin Celik shows [5] the effect of various fuels on power and specific fuel consumption (SFC). As the ethanol content in the blend fuel increase, power also slightly increases. When compared to E0 fuel, the power increases of 3%, 6% and 2%are obtained with E25, E50 and E 75 fuels respectively. The heat of evaporation of ethanol is higher than that of gasoline. High heat of evaporation can provide fuel-air charge to cool and density to increase, thus higher power output is obtained to some extent. However, power increase starts to decrease when ethanol content is raised to more than 50%.

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Performance Of Spark Ignition Engine Using Gasoline-91 And Gasoline-95

Performance Of Spark Ignition Engine Using Gasoline-91 And Gasoline-95

I˙smet Sezer et al. [8] conducted an experimental study on the effects of blends of gasoline with MTBE on the CO emissions and performance of a SI engine. It was found that MTBE-gasoline blends give higher bmep values compared to those of base, leaded, and unleaded gasolines, especially at lower engine speeds. The maximum improvement in bmep is obtained with addition of 10% MTBE to base gasoline for a CR of 8 and an ST of 10° BTDC at a 1400 rpm engine speed. MTBE addition to base gasoline improves bte up to a 15% blending ratio, but further addition of MTBE results in slight decreases in bte. Thus, in the present study, the maximum bte is obtained with a 15% addition of MTBE for all tested conditions among the blended fuels. The best performer among the pure fuels and blends is unleaded gasoline.

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Gasoline Vapour Recovery System

Gasoline Vapour Recovery System

The air from the air pump is transferred to the heater using pipes of small diameters. A hole of size equal to the diameter of the pipe is made to one end of the heater to transfer air from pump to the heater. As the air coming out of the heater is hot, a pipe that has the ability to withstand high temperature is used to transfer hot air from the heater to the condenser. The pipe from the heater is connected to the storage tank containing sufficient amount of gasoline. The gasoline vapours formed are transferred from the tank to the condenser using small diameter pipes and connected to the coiled copper tubes placed in the condenser. The other end of the copper tube is connected to a small vessel to store the liquid gasoline. All the holes and air gaps are tightly sealed using M seal

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The Financial Impact of Revising Pakistans Gasoline Specification from 87 to 92 Research Octane Number

The Financial Impact of Revising Pakistans Gasoline Specification from 87 to 92 Research Octane Number

High RON gasoline is used in engines having high compression ratio requirement. Where compression ratio is elaborated as "In a four cylinder, 2-liter engine, each cylinder would have a 500 cc capacity," says John Nielsen, director of approved auto repair with the American Automobile Association (AAA). "As the piston moves down the cylinder, it draws in 500 cc of air and fuel. The valves close and the piston moves up, compressing the 500 cc charge. If that charge is compressed into 50 cc, the compression ratio of the engine would be 10:1." According to AAA's Nielsen, “using a higher-octane fuel than your car requires won't hurt anything, but it also won't help and you'll be paying more for it, so it hurts in a different way”.

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