The Distributional Impact of Alternative Gasoline Conservation Policies

Abstract

This article provides a methodology for evaluating the direct distributional impacts of energy conservation plans. Focus ing on gasoline conservation, we analyze two different types of plans: excise taxes and white market coupon rationing. Using a sample which focuses on the nonbusiness use of individual households and a gasoline demand function estimated on data from these households, we provide simulated burdens for the different conservation plans. We analyze in detail the distribution ofthe burden, partitioning the population by income class as well as by several important demographic characteristics. ? Protecting people from the adverse effects of higher energy prices has been an important concern in the development and evaluation of energy conservation policies. The standby gasoline rationing authority granted to the President is a way of raising gasoline prices while also protecting low income people from at least some ofthe adverse effects of price increases. The govern? ment has also established assistance programs for homeowners who use home heating oil, presumably to protect them from the impact of oil price decontrol. While the concern over adverse distributional effects has been strong, very little