Fuel switching, gasoline price controls, and the leaded-unleaded gasoline price differential
The Environmental Protection Agency and others have opposed gasoline price decontrol, alleging a wider posted price differential between leaded and unleaded grades would result, inducing more motorists to switch illegally to leaded gasoline fouling catalytic converters and hence increasing air pollu...
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| Veröffentlicht in: | J. Environ. Econ. Manage.; (United States) 1981-09, Vol.8 (3), p.287-302 |
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| creator | Kobrin, Paul |
| description | The Environmental Protection Agency and others have opposed gasoline price decontrol, alleging a wider posted price differential between leaded and unleaded grades would result, inducing more motorists to switch illegally to leaded gasoline fouling catalytic converters and hence increasing air pollution. EPA's model must assume that only the unleaded price ceiling is binding. It is shown that the resulting excess demand is shifted to a close substitute: leaded gasoline. Hence, controls cause more consumption of leaded fuel in new cars (switching) and more pollution. Thus, decontrol would have a palliative effect, contrary to EPA's claim. |
| doi_str_mv | 10.1016/0095-0696(81)90042-5 |
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| identifier | ISSN: 0095-0696 |
| ispartof | J. Environ. Econ. Manage.; (United States), 1981-09, Vol.8 (3), p.287-302 |
| issn | 0095-0696 1096-0449 |
| language | eng |
| recordid | cdi_proquest_journals_215383944 |
| source | RePEc; Periodicals Index Online; Access via ScienceDirect (Elsevier) |
| subjects | 290200 - Energy Planning & Policy- Economics & Sociology 290300 - Energy Planning & Policy- Environment, Health, & Safety 320203 - Energy Conservation, Consumption, & Utilization- Transportation- Land & Roadway DEREGULATION ECONOMETRICS ECONOMIC IMPACT ECONOMICS ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION ENERGY PLANNING, POLICY AND ECONOMY ENVIRONMENTAL IMPACTS FUEL SUBSTITUTION FUELS GASOLINE LIQUID FUELS PETROLEUM PRODUCTS Pollution control Price regulations Prices PRICING REGULATIONS REGULATIONS Substitution Wage & price controls |
| title | Fuel switching, gasoline price controls, and the leaded-unleaded gasoline price differential |
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