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Designing and analysing of demand for gasoline and power plant fuels
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Fazeleh Khadem1   , Ali Akbar Naji Meidani2 , Mohammad Taher Ahmadi Shadmehri3 , Alireza Pooya4 |
1- PhD Candidate in Energy Economics, Department of Economics, Faculty of Administrative and Economic Sciences, Ferdowsi University of Mashhad, Iran
2- Associate Professor, Department of Economics, Faculty of Administrative and Economic Sciences, Ferdowsi University of Mashhad, Iran , naji@um.ac.ir
3- Professor, Department of Economics, Faculty of Administrative and Economic Sciences, Ferdowsi University of Mashhad, Iran
4- Professor, Department of Management, Faculty of Administrative and Economic Sciences, Ferdowsi University of Mashhad, Iran |
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Abstract: (41 Views) |
In this study, the demand for gasoline and power plant fuels during the period 2009 to 2022 was estimated and analyzed using the Autoregressive Distributed Lag (ARDL) approach. The results indicated that past consumption (with a one-period lag), income, and price were the key factors affecting gasoline demand. Among these, income had a positive effect and was more influential than price. Additionally, past consumption had the greatest impact on gasoline demand compared to income and price variables. The income elasticity of fuel oil was found to be 0.33, while the price elasticity, although not statistically significant, was very low in magnitude, indicating that the demand for fuel oil in power plants is inelastic. This suggests that fuel prices are regulated and have little impact on fuel oil demand. Moreover, a 1% increase in the previous period's gas oil consumption by power plants led to a 0.79% increase in its demand. After past consumption, income had the most significant effect on gas oil demand. Specifically, a 1% increase in income resulted in a 0.21% rise in gas oil demand. Although the price coefficient for gas oil had the expected sign and was statistically significant, its price elasticity was very low, further confirming the regulated nature of gas oil prices in the power plant sector.
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| Keywords: Demand, Gasoline, Power Plant Fuels, ARDL Model. |
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Full-Text [PDF 1126 kb]
(47 Downloads)
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Type of Study: Research |
Subject:
Management
Received: 2025/07/4 | Accepted: 2025/07/21 | Published: 2026/04/30
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