AGE ESTIMATION OF CAR FLEET AND ITS IMPACT ON FUEL CONSUMPTION IN IRAN: EFFICIENCY VIS-À-VIS RENOVATION

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MAZRATI M.

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

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Journal: ENERGY ECONOMICS REVIEW Year:2007 | Volume:4 | Issue:12 Page(s): 6-26

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Title

AGE ESTIMATION OF CAR FLEET AND ITS IMPACT ON FUEL CONSUMPTION IN IRAN: EFFICIENCY VIS-À-VIS RENOVATION

Author(s)

MAZRATI M. | Issue Writer Certificate

Keywords

AVERAGE AGE OF CAR FLEETQ3

IRANQ3

CAFE STANDARDSQ3

FUEL EFFICIENCYQ3

RENOVATION OF CAR FLEETQ3

SCRAPPAGEQ3

TRANSPORTATIONQ3

GASOLINE CONSUMPTIONQ3

Abstract

Volume of gasoline consumed in IRAN is determined by such different factors as gasoline price as well as efficiency, age, and number of cars -in use among many other structural and cultural variables. This paper considers the average age and efficiency of cars and gasoline demand mo4els.' as a function of the age, efficiency, price and other explanatory variables to prove that although renovation of the fleet could have positive impact on fuel saving, it is yet to be the most effective approach. It also shows that mandatory efficiency standards for car .manufactures and imported cars like the CAFE STANDARDS in US, could lead to improved efficiency of car fleet, where lower cost within a shorter Period of time are incurred, The shorten n efficiency elasticity of gasoline demand is -3.5 which proves the above mentioned hypothesis. One percent increase in the efficiency of the fleet would lead to about 3.5 percent decrease in gasoline demand in the short run. Denoting a considerable. fuel saving. The short term price elasticity of gasoline demand is estimated at -0.17 demonstrating insignificant response of demand to price in short term although a higher impact can be envisaged in long term. The car age and elasticity of gasoline demand by the fleet of cars are estimated at 0.16 and 0.43 respectively. The elasticity of the number of cars is less than unit but it is still considerable and indicates the considerable impacts of growing size of the fleet on fuel demand. The current development of the fleet size is indicative of a dramatic rise in the number of registered cars which in turn translates to sharp increase in gasoline demand in the future. The paper concludes that in order to get better results, such measures as rationalizing gasoline prices, decreasing average lifetime of car fleet, enforcing the CAFE STANDARDS to improve the efficiency of cars, levying higher taxes on old cars, scrapping down the old vehicles among other policies should be considered as a part of general policy.

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APA: Copy

MAZRATI, M.. (2007). AGE ESTIMATION OF CAR FLEET AND ITS IMPACT ON FUEL CONSUMPTION IN IRAN: EFFICIENCY VIS-À-VIS RENOVATION. ENERGY ECONOMICS REVIEW, 4(12), 6-26. SID. https://sid.ir/paper/99481/en

Vancouver: Copy

MAZRATI M.. AGE ESTIMATION OF CAR FLEET AND ITS IMPACT ON FUEL CONSUMPTION IN IRAN: EFFICIENCY VIS-À-VIS RENOVATION. ENERGY ECONOMICS REVIEW[Internet]. 2007;4(12):6-26. Available from: https://sid.ir/paper/99481/en

IEEE: Copy

M. MAZRATI, “AGE ESTIMATION OF CAR FLEET AND ITS IMPACT ON FUEL CONSUMPTION IN IRAN: EFFICIENCY VIS-À-VIS RENOVATION,” ENERGY ECONOMICS REVIEW, vol. 4, no. 12, pp. 6–26, 2007, [Online]. Available: https://sid.ir/paper/99481/en

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