DEMAND FOR GASOLINE AND THE HETEREGENEIDAD IN THE INCOME OF HOUSEHOLDS IN MEXICO

The objective of the present study is analyzing the behavior of consumption of gasoline by decile of income of households in Mexico from 1984 to 2010 and, to from an econometric analysis, assess the impact of the price of gasoline, the household income and the number of vehicles in the demand for ga...

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Bibliographic Details
Published in:	Investigación económica Vol. 74; no. 291; p. 117
Main Authors:	Sanchez, Armando, Islands, Suriel, Sheinbaum, Claudia
Format:	Journal Article
Language:	English
Published:	Mexico City Universidad Nacional Autonoma de Mexico 01-01-2015
Subjects:	Consumption function Econometrics Energy consumption Family income Gasoline prices Households Low income groups Studies Mexico
Online Access:	Get full text
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Summary:	The objective of the present study is analyzing the behavior of consumption of gasoline by decile of income of households in Mexico from 1984 to 2010 and, to from an econometric analysis, assess the impact of the price of gasoline, the household income and the number of vehicles in the demand for gasoline by income groups. The analysis is carried out based on information from the national survey of income and expenditure (Enigh). The results show that spending on gasoline is heterogeneous and that income is a significant variable for the lower income deciles. The price of gasoline was found to be a significant variable for all deciles; However, the sectors that consume more are inelastic to the price of fuel. These results suggest that a policy of sustained increase in the price of gasoline will most impact low income households that have vehicle and will not represent a significant reduction in fuel consumption.
ISSN:	0185-1667