Title
The determinants of fuel use in the trucking industry-volume, fleet characteristics and the rebound effect The determinants of fuel use in the trucking industry-volume, fleet characteristics and the rebound effect
Author
Faculty/Department
Faculty of Applied Economics
Publication type
article
Publication
Oxford ,
Subject
Economics
Source (journal)
Transport policy. - Oxford
Volume/pages
24(2012) , p. 284-295
ISSN
0967-070X
ISI
000314010300030
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
Abstract
This paper studies the determinants of fuel use in the trucking industry in Denmark, using aggregate time series data for the period 1980-2007. The model captures the main linkages between the demand for freight transport, the characteristics of the vehicle fleet, and the demand for fuel. Results include the following. First, we precisely define and estimate a rebound effect of improvements in fuel efficiency in the trucking industry: behavioural adjustments in the industry imply that an exogenous improvement in fuel efficiency reduces fuel use less than proportionately. Our best estimate of this effect is approximately 10% in the short run and 17% in the long run, so that a 1% improvement in fuel efficiency reduces fuel use by 0.90% (short-run) to 0.83% (long-run). Second, we find that higher fuel prices raise the average capacity of trucks, and they induce firms to invest in newer, typically more fuel efficient, trucks. Third, these adjustments and the rebound effect jointly imply that the effect of higher fuel prices on fuel use in the trucking industry is fairly small; estimated price elasticities are -0.13 and -0.22 in the short run and in the long run, respectively. The empirical results of this paper have implications for judging the implications of fuel efficiency standards and regulations with respect to larger trucks in the EU. (c) 2012 Elsevier Ltd. All rights reserved.
E-info
https://repository.uantwerpen.be/docman/iruaauth/261880/b995068.pdf
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