Gasoline Prices, Fuel Economy, and the Energy Paradox

By Hunt Allcott, Nathan Wozny. Review of Economics and Statistics, 2014

535 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/2aaabe5bd2c3ffac4187e61da5b4027e6b4f70f7

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Citations in the corpus

Internal and external barriers to energy efficiency: which role for policy interventions? (2019, background): “Busse et al. (2013) and Allcott and Wozny (2014) report that consumers tend to undervalue changes in expected future energy costs, although the undervaluation is not large.”
IDENTIFYING CAUSAL MECHANISMS (PRIMARILY) BASED ON INVERSE PROBABILITY WEIGHTING (2014, background): “…¼ E E Y I D ¼ df g Pr D ¼ djXð ÞjX ¼ x ¼ E Y I D ¼ df g Pr D ¼ djXð Þ (4) where the first equality follows from the law of iterated expectations, the second from Assumption 1, the third from basic probability theory and the last from the law of iterated expectations (see also Hirano et al., 2003).”
Willingness to pay for electric vehicles and vehicle-to-grid applications: A Nordic choice experiment (2019, background): “Assuming an approximate 10 year lifespan of a consumer’s vehicle, and a consumer-based implied discount rate of 15% (30,31), this is roughly equivalent to €3,400 to €5,200/year (much higher than average yearly petrol costs, which would be about €1,000 to €1,300/year (32)).”
Are consumers willing to pay to let cars drive for them? Analyzing response to autonomous vehicles (2017, background): “Several recent studies in the economics literature that leverage variation in gasoline prices, however, suggest that consumers fully value or only slightly undervalue fuel cost savings in new vehicle markets and only moderately undervalue these savings in used vehicle markets (Allcott and Wozny, 201”
The Long-Run Dynamics of Electricity Demand: Evidence from Municipal Aggregation (2020, background): “While Allcott and Wozny (2014) reject full capitalization of gasoline prices into used vehicle prices, they nonetheless find that vehicle prices are significantly affected by future expected fuel costs.”
Are Consumers Myopic? Evidence from New and Used Car Purchases (2013, methodology): “We differ from Allcott and Wozny (2011), who use car age to measure depreciation.”
Individual Time Preferences and Energy Efficiency (2015, background): “Instead, most assessments assume a certain discount rate against which the rationality of observed choices is gauged (Allcott and Wozny 2014), or alternatively, estimate aggregate discount rates that best match observed EE decisions, conditional on an assumed decision model (Hausman 1979).”
Subsidies and Time Discounting in New Technology Adoption: Evidence from Solar Photovoltaic Systems (2019, methodology): “For example, after Hausmans (1979) contribution, a detailed literature on the car market focuses on how households trade o¤ future fuel cost savings against higher upfront purchase prices, without explicitly modeling the timing of the purchase decision; see Verboven (2002), Allcott and Wozny (2013)”