Demand for gasoline and diesel fuel by farmers in the USA
Noel D. Uri
Resources and Technology Division, Economic Research Service, US Department of Agriculture, Washington, DC, USA
Search for more papers by this authorMohinder Gill
Resources and Technology Division, Economic Research Service, US Department of Agriculture, Washington, DC, USA
The views expressed are those of the authors and do not necessarily represent the policies of the US Department of Agriculture or the views of other US Department of Agriculture staff members.
Search for more papers by this authorNoel D. Uri
Resources and Technology Division, Economic Research Service, US Department of Agriculture, Washington, DC, USA
Search for more papers by this authorMohinder Gill
Resources and Technology Division, Economic Research Service, US Department of Agriculture, Washington, DC, USA
The views expressed are those of the authors and do not necessarily represent the policies of the US Department of Agriculture or the views of other US Department of Agriculture staff members.
Search for more papers by this authorAbstract
This study endeavours to determine whether farmers in the USA adjust their consumption of gasoline and diesel fuel in response to changes in the relative prices of different types of energy. A demand model is specified and estimated. The conclusions suggest that the price of gasoline (diesel fuel) is a factor impacting the quantity of gasoline (diesel fuel) demanded by farmers, but there is no indication that other types of energy are substitutes for gasoline (diesel fuel). Additionally, the level of farming activity is a very important factor driving the demand for gasoline (diesel fuel). Finally, the estimated models of gasoline and diesel fuel demand are structurally stable over the period 1971–1988.
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