ESTIMATING THE CROSS-PRICE ELASTICITY OF REGULAR GASOLINE WITH RESPECT TO THE PRICE OF PREMIUM GASOLINE

Gasoline demand has been extensively researched, yet there has been no attempt to estimate cross-price elasticities of different grades of gasoline. Such knowledge will allow accurate determination of the impact of a fuel pricing policy that has different rates of tax or subsidy depending on the gasoline grade. April 1, 2018.