Comparing WTP and Rationtioning Energy Policies for Gazoline and Dual-Consumption Automobiles in Mashhad

اقتصاد پولی مالی

Article 7, Volume 21, Issue 7, January 2015, Pages 156-181   

Document Type: پژوهشی

DOI: 10.22067/pm.v21i7.43020

Authors

Mahdi Khodaparast Mashhadi^* ; Abdolhamid Rezaei-Roknabadi; Jalal Bakhtazma; Haniehi Fanood

Abstract

Pricing and rationing policies for controlling energy consumption are important
factors in resisting economies. For this end we have compared Willingness to Pay
and rationing policies enacted for different gasoline and dual consumption
automobiles, to see statistically,(1)Whether there is any difference between their
energy usage and WTP? (2)Whether there is any difference between energy volume
rationed between different kinds of automobiles, and their WTP? Discovering endusers’
willingness to pay a questionnaire is designed, and based on sampling 200
questionares are distributed among gasoline and dual consumption consumers of different automobiles in Mashhad city randomly. In this study, Contingent Valuation
Method (CVM) is used to investigate willingness to pay for gasoline consumption
that is based on energy policies experienced in Mashhad in 2008. Descriptive
Method is used to describe the energy space situation in the public; and nonparametric
statistical tests have been used to provide some explanations for research
questions. Results indicate that, (1)there is statistically significance between energy
consumption (gasoline and gaz), and WTP; so different pricing policies is
desireable; (2) there is not any statistially significance between WTP rationing
volumes provided for different automobiles; and WTP; so pricing policies should be
the same for all kinds of automobiles

Keywords

Willingness to pay; Contingent valuation method; Fuel Rationing

References

[1] Akbari, N., Shajari, H. & Bidram, R. (2008) Car Users Willingness to Pay

Estimation for Gasoline (CVM) Iranian Journal of Economic Research, 79:

39-58 (in Persian).

[2] AliMardani, P., Kermanshah, M. (2008) Gasoline Willingness to Pay Survay

Sharif University Civil Engeenearing Journal, 24(42): 13-20 (in Persian).

[3] Biel, A., Johansson-Stenman, O. & Nilsson A. (2011) The Willingness to

Pay–Willingness to Accept Gap Revisited: The Role of Emotions and

Moral Satisfaction Journal of Economic Psychology, 32(6): 908-917.

[4] Brown, T. C. , Champ, P. A. , Bishop, R. C. , and McCollum, D. W. (1996)

Which Response Format Reveals the Truth about Donations to a Public

Good. Land Economics, 72(2).

[5] Cameron, T. A. James, M. D. (1986) Utilizing Closed-Ended Contingent

Valuation Survey Data for Preliminary Demand Assessments UCLA

Economics Working Papers 415, UCLA Department of Economics.

[6] Chaudhry, P., Singh, B., Tewari, V. P. (2007) Non-Market Economic

Valuation in Developing Countries: Role of Participant Observation

Method in CVM Analysis Journal of Forest Economics, 13(4- 5): 259-275.

[7] Elkhafif, M. A., Kubursi, A. A. (1993) The Demand for Gasoline: a Two

Stage Approach International Journal of Forecasting, 9(4): 457-465.

[8] Eltony, M. N. (1996) Demand for Gasoline in the GCC: an Application of

Pooling and Testing Procedures Energy Economics, 18(3): 203-209.

[9] Espey, M. (1998) Gasoline Demand Revisited: An international meta analysis of Elasticities Energy Economics, 20(3), 273-295.

[10] Feng, Y., Fullerton, D., Gan, L. (2005) “Vehicle Choices, Miles Driven

and Pollution Policies”Cambridge, M.A.

[11] Gonzalez-Caban, A., Loomis, J. B., Rodriguez, A., Hesseln, H. (2007) A

Comparison of CVM Survey Response Rates, Protests and Willingness-to-

Pay of Native Americans and General Population for Fuels Reduction

Policies Journal of Forest Economics, 13(1): 49-71.

[12] Graham, D., Glaister, S. (2002) The Demand for Automotive Fuel: A

Survey of Elasticities, Journal of transport Economics and policy, 36(1), 1-

26.

[13] Horowitz, J. K., McConnell, K.E. (2003) Willingness to Accept,

Willingness to Pay and the Income Effect Journal of Economic Behavior &

Organization, 51(4):537-545.

[14] Khataee, M. , Aghdami, P. (2005) Price Elacticity Analysis for Gasoline

in Iran’s Transportation Sector and Demand Forcasting Iranian Journal of

Iran’s Economic studies, 7(25): 23-46 (in Persian).

[15] Kniivilä, M. (2006) Users and Non-Users of Conservation Areas: Are

There Differences InWTP, Motives and the Validity of Responses In CVM

Surveys? Ecological Economics, 59(4): 530-539.

[16] McFadden, D. (1986) The Choice Theory Apporach to Market

Research. Marketing Science, 5(4).

[17] Nagle, T. T. & Holden, R. K. (2002) Opportunity Costs: A Practical

Illustration The Strategy and Tactics of Pricing, Prentice Hall Marketing

Series, p: 29.

[18] Park, S. Y. & Zhao, G. (2010) An Estimation of U.S. Gasoline Demand:

A Smooth Time-Varying Cointegration Approach, Energy Economics,

32(1): 110-120.

[19] Shakeri, A., Mohammadi, T. , Jahangard, E. & Moosavi, M. (2010)

Gasoline Deamd Estimation with Stractural Model in Transportation

Sector Iranian Journal of Energy Economic Studies, 7(25): 1-31(in Persian).

[20] Sohaili, K. (2010) The Effect of Determining Gasoline Price According

to Market Mechanism on Environment Pollution (Case Study of Iran)

Procedia Environmental Sciences, 2: 270-273(in Persian).

[21] Su, Q. (2011) The Effect of Population Density, Road Network Density,

and Congestion on Household Gasoline Consumption in U.S. Urban Areas

Energy Economics, 33 (3):445-452.

[22] Tsur, M. (2008) The Selectivity Effect of Past Experience on

Purchasing Decisions: Implications for The WTA–WTP Disparity Journal

of Economic Psychology, 29(5):739-746.

[23] Wahud, Z. & Daniel, J.G. , Noland, R.B. (2007) Modeling Fuel Demand

for Different Socioeconomic Groups Transportation Research Board 86th

Annual Meeting.

[24] West, S. E. (2004) Distributional Effects of Alternative Vehicle

Pollution Control Policies, Journal of public economics, 88(3-4): 735-757. [25] Westendorp, P. W. (1976) NSS-Price Sensitivity Meter (PSM)-A New

Approach to Study Consumer Perception of Price. Proceedings of the

ESOMAR Congress.

[26] Zaranejad, M. & Ghapanchi, F. (2008) Error Corection Model

Estimation for Gasoline Demand in Iran Iranian Journal of Commercial

Research, 11(42): 29-52 (in Persian).