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
Working paper | Peer reviewedAbstract
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.
Details about the publication
Place of publication: Münster
Title of series: Institute of Transport Economics Münster — Working Paper
Volume of series: 39
Status: Published
Release year: 2023
Language in which the publication is written: English
Link to the full text: https://www.wiwi.uni-muenster.de/ivm/sites/ivm/files/documents/forschung/diskussionspapiere/workingpaper39.pdf
Keywords: fuel prices; speed price elasticity; no speed limit; short- run fuel demand elasticity; value of time; German Autobahn
Authors from the University of Münster
| Hagedorn, Thomas | Professur für Verkehrswissenschaft (Prof. Sieg) |
| Kösters, Till | Professur für Verkehrswissenschaft (Prof. Sieg) |
| Specht, Sebastian | Professur für Verkehrswissenschaft (Prof. Sieg) |
| Wessel, Jan | Professur für Verkehrswissenschaft (Prof. Sieg) |