Abstract
A recent article [1] used data for 1977 from different countries to estimate the long-run price elasticity of demand for gasoline. Some aspects can be criticized, particularly the interpretation of the results and the model used. An alternative is developed which accepts that the key factor influencing gasoline consumption is the stock of cars. However, energy use per car will vary depending on the size of the country and its average income and price of fuel. This model gives a non-linear equation which is estimated using the same data. All the coefficients are significant with the price elasticity being inelastic.
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