Release time:2024-03-01 Hits:
- Indexed by:Journal paper
- First Author:Jindong Pang
- Correspondence Author:Shulin Shen
- Co-author:Lan An
- Journal:Resource and Energy Economics
- Included Journals:SSCI
- Discipline:Economics
- Document Type:J
- Issue:75
- Page Number:101407
- ISSN No.:0928-7655
- Key Words:Gasoline price
Traffic congestion
Carbon emission
Fuel efficiency
- Date of Publication:2023-10-31
- Abstract:This paper explores the effect of gasoline prices on traffic congestion and carbon emissions. The
international crude oil price is used as an instrumental variable for the gasoline price in Chinese
cities. Empirical results show that a ten percent increase in gasoline prices significantly decreases
traffic congestion in rush hours by 0.87%. In addition to reducing vehicle kilometers traveled,
higher gasoline prices also decrease carbon emissions by increasing travel speed and fuel effi
ciency. A ten percent increase in gasoline prices is found to decrease CO2 million metric tons, accounting for 2.3% of the total CO2 emissions by 40.6 emissions in the transport sector of
China in 2016. This paper’s estimates offer guidance for gasoline pricing policies, fuel taxes, traffic congestion, and the Dual-Carbon Target.
