NBER Working Papers by Randy Chugh

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Working Papers

September 2014The Welfare Effects of Fuel Conservation Policies in the Indian Car Market
with Maureen L. Cropper: w20460
We estimate a model of vehicle choice and kilometers driven to analyze the long-run impacts of fuel conservation policies in the Indian car market. We simulate the effects of petrol and diesel fuel taxes and a diesel car tax, taking into account their interactions with the pre-existing petrol fuel tax. Holding constant the total amount of fuel conserved, further taxing petrol fuel creates a larger deadweight loss than taxing diesel fuel, while taxing diesel cars creates a negative deadweight loss. Diesel fuel and diesel car taxes shift new car buyers from diesel to petrol, raising revenue through the pre-existing petrol fuel tax in the process. In the case of the diesel car tax, the deadweight loss is more than fully offset by this petrol fuel tax revenue. This result reflects the size of ...
April 2011The Cost of Fuel Economy in the Indian Passenger Vehicle Market
with Maureen L. Cropper, Urvashi Narain: w16987
To investigate how fuel economy is valued in the Indian car market, we compute the cost to Indian consumers of purchasing a more fuel-efficient vehicle and compare it to the benefit of lower fuel costs over the life of the vehicle. We use hedonic price functions for four market segments (petrol hatchbacks, diesel hatchbacks, petrol sedans, and diesel sedans) to compute 95 percent confidence intervals for the marginal cost to the consumer of an increase in fuel economy. We find that the associated present value of fuel savings falls within the 95 percent confidence interval for some specifications, in all market segments, for the years 2002 through 2006. Thus, we fail to consistently reject the hypothesis that consumers appropriately value fuel economy. When we reject the null hypothesis, t...

Published: Chugh, Randy & Cropper, Maureen & Narain, Urvashi, 2011. "The cost of fuel economy in the Indian passenger vehicle market," Energy Policy, Elsevier, vol. 39(11), pages 7174-7183. citation courtesy of

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