The demand for small cars in the United States: Implications for energy conservation strategies

The demand for small cars in the US in 1986 and the awareness and responsiveness of different households to the need for energy conservation were investigated. The year 1986 is the most recent one in which household data are available and is a time when the energy crisis had ceased to exist for most...

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Bibliographic Details
Published in:Journal of consumer policy 1992-01, Vol.15 (1), p.1-20
Main Authors: Dardis, Rachel, Soberon-Ferrer, Horacio
Format: Article
Language:English
Subjects:
Automobiles
Conservation
Consumer behavior
Energy conservation
Environmental aspects
Households
Motor vehicles
Motor vehicles, Compact
Motor vehicles, Foreign
Power resources
Prices
Small
Studies
Supply and demand
United States
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Summary:The demand for small cars in the US in 1986 and the awareness and responsiveness of different households to the need for energy conservation were investigated. The year 1986 is the most recent one in which household data are available and is a time when the energy crisis had ceased to exist for most customers. The analysis considered the preference for Japanese as opposed to US automobiles. Two stage probit analysis was used to examine the impact of various explanatory variables on the purchase decision. Out of a sample of 367 households that made new car purchases in 1986, the purchases included 141 small American cars, 84 small Japanese cars, and 142 large American cars. The results indicated that preferences for Japanese cars, income, price, and several household characteristics had a significant impact on the probability of purchasing a small car. The results also provide support for freer trade in automobiles and higher gasoline taxes as energy conservation strategies.
ISSN:0168-7034
1573-0700
DOI:10.1007/BF01016351