Some Suggestion on Gasoline Conservation Management Policy - An Empirical Analysis Using Cointegration and Error-Correct Model Techniques

Abstract

It is of great significance to study gasoline conservation management policies for that the demand for gasoline continually grow rapidly and the high dependence on oil imports in China. In this paper, the relationship between gasoline consumption, national income and price of gasoline is empirically examined using cointegration and error correction techniques. And with a comparative analysis, this paper gets conclusions as follows: A one-size-fits-all national management policy is not appropriate for the purpose of gasoline conservation, and the gasoline conservation management policy should pay more attention to its long-term effects. The management policy of increasing the price of gasoline (such as fuel tax, etc.) is very limited in reducing gasoline consumption, and is not highly recommended in most of the provinces. In some province, management measures improve both the current and future gasoline consumption behavior will be effective, while in others measures improve current gasoline consumption behavior will be better. And the Publicity instrument is recommended in most provinces.