Hasanov, Mubariz2024-05-252024-05-252015100140-98831873-618110.1016/j.eneco.2015.05.0232-s2.0-84938500296https://doi.org/10.1016/j.eneco.2015.05.023https://hdl.handle.net/20.500.14517/295Hasanov, Mubariz/0000-0003-0216-9531; Hasanov, Mübariz/0000-0003-0216-9531In this paper, we estimate the demand for transport fuels in Turkey. Specifically, using four different models, namely a partial adjustment model, a distributed lag model, an autoregressive distributed lag model, and an error correction model, we estimate gasoline and diesel demand functions with quarterly data covering the period 2003:Q1-2014:Q3. We find a stable long-run relationship only for diesel demand, income and price. Our results imply that gasoline demand does not respond to income and price in the long run, reflecting a shift from gasoline towards diesel induced by differential tax policies. Furthermore, we find that transport fuel demand is price inelastic, making tax on fuel a perfect tool for raising budget revenues. In addition, our results suggest that fuel demand responds to negative and positive price changes symmetrically. (C) 2015 Elsevier B.V. All rights reserved.eninfo:eu-repo/semantics/closedAccessGasoline demandDiesel demandElasticityEstimationArticleQ1Q151125134WOS:000364439500012