No Need for Speed: Fuel Prices, Driving Speeds, and the Revealed Value of Time on the German Autobahn

Hagedorn, Thomas; Kösters, Till; Specht, Sebastian; Wessel, Jan


Zusammenfassung

We estimate the relationship between fuel prices and driving speeds on the German Autobahn. The speed price elasticities are higher on sections without a speed limit (-0.047) than on those with a limit (-0.033), thus underlining the distortionary effect of speed limits on previously estimated elasticities. We also find higher elasticities when drivers are alone on the road, for high prices, and slower drivers. Based on the undistorted speed price elasticities, we estimate the short-run fuel demand elasticity and the revealed value of time (20.71Euro/h; 83% of gross wage), hence providing valuable input for policymakers and infrastructure planning.

Schlüsselwörter
fuel prices; speed price elasticity; no speed limit; short- run fuel demand elasticity; value of time; German Autobahn



Publikationstyp
Arbeitspapier / Working Paper

Begutachtet
Nein

Publikationsstatus
Veröffentlicht

Jahr
2023

Band
39

Reihe
Institute of Transport Economics Münster — Working Paper

Ort
Münster

Sprache
Englisch

Gesamter Text