Baker Center Fellow and assistant professor of Economics, Jacob LaRiviere, recently co-authored an article on fuel price increases in the Journal of Environmental Economics and Management. His co-author was Melanie Cozad, Furman University, and the entire article can be viewed here: LaRiviere Cozad JEEM
LaRiviere and Cozad, provided this introduction to their research:
Their research used the oil price increase of 1979 and found that it induced significant decreases in carbon emissions on both the intensive (miles driven) and extensive (auto fuel efficiency) margins. Read the entire article for additional findings, which have important implications for estimating demand elasticities for durable goods with respect to energy prices and the price elasticity of the fuels themselves.