Template-Type: ReDIF-Paper 1.0
Author-Name: Gioele Figus
Author-Name-First: Gioele
Author-Name-Last: Figus
Author-Email: gioele.figus@strath.ac.uk
Author-Workplace-Name: CEP, Institute for International Public Policy, University of Strathclyde
Author-Name: J Kim Swales
Author-Name-First: J Kim
Author-Name-Last: Swales
Author-Email: j.k.swales@strath.ac.uk
Author-Workplace-Name: Departrment of Economics, University of  Strathclyde
Author-Name: Karen Turner
Author-Name-First: Karen
Author-Name-Last: Turner
Author-Email: karen.turner@strath.ac.uk
Author-Workplace-Name: CEP, Institute for International Public Policy, University of Strathclyde
Title: Can a reduction in fuel use result from an endogenous technical progress in motor vehicles?  A partial and general equilibrium analysis
Abstract: In this paper we employ a partial equilibrium approach to model private transport consumption as a household self-produced commodity formed by vehicle and fuel use. We show that under certain
conditions vehicle-augmenting technical improvements can reduce fuel use. We then extend the
analysis through Computable General Equilibrium simulations for the UK in order to investigate the wider implications of vehicle-augmenting efficiency improvements when prices and nominal income are endogenous. With a conventional macroeconomic approach, improvements in the efficiency of household consumption simply change the composition of household demand. However, when we adjust the consumer price index for changes in the price of private transport service (not observable via a market price), as advocated in Gordon (2016) there is an additional supply-side stimulus to competitiveness.

Length: 52 pages
Creation-Date: 2017-05
Revision-Date: 
Publication-Status: Published
File-URL: https://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/17.05.pdf.pagespeed.ce.bOW51WUVzd.pdf
File-Format: Application/pdf
Number: 1705
Classification-JEL: C68, D58, Q43, Q48.
Keywords: technical progress, energy efficiency, private transport, energy service.
Handle: RePEc:str:wpaper:1705