The distributional impact of alternative gasoline conservation policies

Abstract

This article provides a methodology for evaluating the direct distributional impacts of energy conservation plans. Focusing on gasoline conservation, we analyze two different types of plans: excise taxes and white market coupon rationing. Using a sample which focuses on the nonbusiness use of individual households and a gasoline demand function estimated on data from these households, we provide simulated burdens for the different conservation plans. We analyze in detail the distribution of the burden, partitioning the population by income class as well as by several important demographic characteristics.