1.

Introduction As a result of Indias economic boom, the demand for passenger vehicles has grown swiftly over the last decade. In April 2002, passenger vehicle sales were approximately 50,000; by April 2008, monthly sales had tripled to approximately 150,000. With such rapid growth, many in India are advocating for strong legislative action to avoid the many economic, security, and environmental concerns that may accompany the expansion of the vehicle fleet. As fuel consumption is of concern for both energy security and environmental reasons, much of the Indian debate has centered on policies to increase vehicle fuel economy. One argument for fuel economy standards (as opposed to higher fuel taxes) is that consumers undervalue fuel savings; that is, they fail to buy a more fuel-efficient vehicle even though the additional purchase price is less than the present value of fuel savings.

Overview of the Indian Passenger Vehicle Market: The Indian automotive industry has flourished like never before in the recent years. On the canvas of the Indian Economy, Auto Industry occupies a prominent place. Due to its deep forward and backward linkages with several key segments of the economy, automotive industry has a strong multiplier effect and is capable of being the driver of economic growth. A reasonably developed Indian automotive industry ably fulfils this catalytic role.

Although the automotive industry in India is nearly six decades old, it remained dormant until 1982, largely due to stifling licensing regime. Today, India is the world's second largest manufacturer of two wheelers, fifth largest manufacturer of commercial vehicles and manufactures largest number of tractors in the world. The country offers fourth largest passenger car market in Asia.

During the year 2005-06, the turnover of the automotive sector was around $ 30 billion. According to auto industry experts, Indian Automobile sales will grow at a CAGR of 9.5% to 13,008 million units by 2010 from the current 10.0 million units. This extraordinary growth that the Indian automotive industry has witnessed is a result of a two major factors namely, the improvement in the living standards of the middle class and an increase in their disposable incomes. Moreover, the liberalization steps, such as, relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and the banking reforms, initiated by the Government of India, have played an equally important role in enabling the Indian Automotive industry achieve great heights. Also, the institutionalisation of automobile finance has further paved the way for a sustainable long-term high growth of the industry. The once highly protected Indian automobile has been gradually opened up to the global market with liberalisation of overall economy. Global auto giants are shifting their manufacturing bases to India. Currently, almost all auto giants from Korea, Japan, US and Europe are present in Indian market in various segments. Foreign Direct Investment (FDI) has created a strong visible impact on the Indian car market not only by contributing to capital, technology and best managerial practices, but also introducing intense competition among the manufacturers. The overall automobile industry performance has showed encouraging results for all the segments of the industry. Today, India has become the second fastest growing car market in the world. Passenger car sales have tripled in six years. It's also to be noted that the demand for luxurious models, SUVs, and mini-cars for family owners have shot up, largely due to increase in the consumer's buying capacity.

General Characteristics of Indian Households/Families:

It has been estimated that in 2005, there were about 206 million households in India, of which 61 million (30 per cent) resides in urban. Of the total households, nearly 9.4 million (5 per cent) households own at least one car, while 32 per cent household own two wheelers (and not cars). Although, just 30 per cent households are in urban areas but about 10 per cent of them own a car, while this ratio is just 2 per cent in case of rural. That is why the paper focuses on urban car market because this is the place where maximum growth in car demand is expected in near future. Table below gives a clear comparative picture of demographic profiles of Indian households. It divides households at all India level into three categories: car owners, two wheeler owners (not having a car) and households with no automobile. It shows that the average annual income of a household in case of car owners is Rs. 1.99 lakh, which is much higher than the household owning two wheelers (Rs. 83,184).

About three-fourths of the car owning households are salary earners and self employed (non agriculture), while this is just little above 50 per cent in case of two wheeler owning households. Though both of these sources of income have equal shares in case of car owning households, there exists a huge difference within two wheeler owning households.

Literature Review:
ICRA rating July 2011. This article examines the 30% growth over the past two fiscals, the growth in the commercial vehicle (CV) sector appears to be slowing down in line with the trends being witnessed by the broader automobile sector. During April-May 2011, the domestic CV sector posted a modest 12% growth on YoY basis compared to 27% in FY11. Rising interest rates, slowing industrial output, substantial increase in vehicle prices coupled with high-base effect of previous years are the main factors impacting growth in the sector. Over the past six months, OEMs have taken successive price increases to pass on the impact of emission norms changes and increase in commodity prices. The rising diesel & Petrol prices have also impacted the operating economics, being a major part of a freight operators cost structure. This coupled with higher interest rates (averaging 13% at present for large fleet operators) have substantially increased the cost of vehicle ownership for fleet operators. At the same time, freight rates on major routes have remained relatively stagnant thereby indicating that fleet operators profitability and cash flows are coming under pressure. Alcott, H., and N. Wozny. 2010. The Purpose is to examine how consumers trade off the present value of fuel expenditures against purchase price, holding other vehicle characteristics constant. This requires identifying the parameters of consumers utility functions. Recognizing that both the demand and supply of new vehicles respond to gasoline prices, Allcott and Wozny use expected vehicle operating cost at the time when the vehicle was new to instrument for the quantity of used vehicles available on the market. McManus, Walter. 2007. These effects will alter the demand for automobiles. Both will work to reduce the demand for large vehicles as a result of an increase in fuel prices, but will have ambiguous effects on small vehicles. Income effects occur as a result of decreased consumer wealth. When people are worse off, they purchase fewer goods and services regardless of what those goods and services might be. Cars are an expensive item, so decreased incomes due to high fuel prices will tempt consumers to make do with the vehicles they have by putting off or even scrapping intended vehicle purchases. Hunt, R., P. Isard and D. Laxton 2002 ,The researchers found a negative association
between oil prices and economic activities.However, they recognised a greater change in economic

activities when oil prices had increased than when oil prices had declined. It was found that workers responded in an asymmetric way to oil price hike and decline. They pushed wages to higher level for resisting the fall in their real consumption level that had resulted from oil price hike, but they did not resist any kind of increase in their consumption resulting from declining oil prices Meghan R.

Busse, Christopher R. Knittel, Florian Zettelmeyer In this paper the author has made use of detailed, transaction-level data on automobile purchase.They have found that transactions prices of fuel efficient cars rise when Petrol prices increase, while prices of fuel ineffcient cars fall. We find that customers buy more fuel effcient new cars relative to their trade in cars when Petrol prices increase. Finally, we find substantial effects on inventories: fuel inefficient cars sit on dealer lots longer when Petrol prices rise, while fuel efficient cars are sold more quickly. Anonym The oil prices have started rising significantly since the initiation of the twenty first century. Theoretically, one can judge the impact of an oil price shock. The immediate effect of the oil price shock is the increased cost of production due to increased fuel cost. This creates an inflationary effect (mainly cost push inflation which is accompanied by a situation of unemployment). Whenever there is an overall inflation in the economy, the cost of production would also rise causing a decrease in supply. National Institute Economic Review The paper uses MULTIMOD to analyse the macroeconomic effects of oil price shocks, distinguishing between temporary, more persistent, and permanent shocks. It provides perspectives on several findings in the literature and the key role of monetary policy in influencing macroeconomic outcomes. Specific attention is paid to the channels through which oil price increases can pass through into core inflation, the implications of delayed policy responses, and the relative merits of leaning in different directions when the correct policy response is uncertain .The Global Insight Automotive they have observed that the major change in the economic environment in the last few years has been the soaring price of crude oil. The drastic shift from $25 to $120140/barrel oil has brought the developed economies to the brink of recession, reduced lightvehicle demand, and is now increasingly impacting the mix of vehicles sold. It has been a major destabilizing force, and while the oil price has come down somewhat of late, the prospect of considerably higher prices represents an ever present threat (as well as for emerging markets). High oil prices have also added greatly to future uncertainty and made forward planning that much more difficult. This discussion paper has outlined some of the threats of higher oil, as well

as some of the opportunities, and hopefully, can assist in serving as a frame work for future contingency plans.

Meghan R. Busse, Christopher R. Knittel, Florian Zettelmeyer Overall, it has been found that both statistically and economically significant effects of Petrol prices on new car market shares as measured either by fuel efficiency quartiles or by segments. This is particularly true for the extremes, measured as the most fuel-efficient and least fuelefficient quartiles, where market share shifts by more than 10% in response to a $1 increase in Petrol prices. CRISIL Research expects growth in passenger vehicles to decelerate sharply to 2-4 per cent with domestic cars growing at a mere 0-3 per cent as against earlier forecast of a growth of 8-10 per cent. They have analysed this on account of a rise of Rs. 3 in the petrol prices and a 25 bps increase in interest rates. Growth is expected to reach to the levels comparable to 200809, when the domestic car sales grew by only 1.4 per cent due to global recession. This would be only the second time in the decade when industry will grow at sub 5 per cent. OEMs and dealers interactions indicate a situation of higher inventory and discounts for most models and high waiting periods for diesel models arising out of capacity constraints for the same. BIG PAIN AT THE PUMPS KIRBY, JASON SORENSEN, CHRIS This article reports on the high cost of gasoline in May 2011 and the effect of the prices on the economy. The article discusses how fluctuating gas prices affect commodity prices, trade, and investments. Information is also provided on how oil prices and energy costs reduce consumer spending behavior. It's not just drivers feeling the heat. Why volatile fuel prices are killing the economy. FOR AN ECONOMY like the U.S., which is overwhelmingly reliant on consumer spending, any sharp increase in oil prices wreaks havoc. According to James Hamilton, a professor of economics at the University of California, San Diego, 10 out of 11 recessions since the Second World War were preceded by a spike in energy prices. The reason is simple. When U.S. gasoline prices reach levels like US$3.50 a gallon--they're currently at US$3.92 a gallon--discretionary spending comes to a halt. People stop buying gadgets, they eat out less, and they put less mileage on their vehicles. In fact, Hamilton argues that the slowdown in 2007 and 2008 might not have developed into a full-blown recession at all, were it not for a severe decline in U.S. domestic auto production, itself the result of high fuel prices. Absent the collapse of the auto sector, Hamilton

argues the economy would have out 1.2 per cent of growth between the fourth quarter of 2007 and the third quarter of 2008. Testing for Asymmetric Pricing Behaviour in Irish and UK Petrol and Diesel Markets A range of sturctural indicators suggest that Irish retail fuel markets at national level are competitive, with tbe markets characterised by relatively tight margins. Still, the perception persists that the retail transport fuel market in Ireland may not be entirely competitive with consumers not benefitting from falls in cmde oil prices with tbe same rapidity as they are burdened with rises in cmde oil prices. This perception is to a large extent based on anecdotal evidence only, as there is a dearth of studies that have empirically tested whether Irish fuel markets are characterised by asymmetric pricing behaviour. The NCA investigated the movements of refined prices, wholesale prices and retail pump prices in Ireland during 2008. While the NCA concluded that there is little evidence to suggest unwarranted delays in the passing through of refined oil price falls to consumer prices, their study was based on a just one year of data and did not assess the issue using econometric models. In contrast, this paper contains a rigorous econometric assessment of tbe pass-through of oil prices in Irish liquid fuel markets using a long span of data. The UK fuels market is also examined for comparison purposes. The econometric analysis uses threshold autoregressive models to test for asymmetries in the Irish fuel markets. The paper contains a methodological note on the importance of allowing for 3 or 4 regimes in the threshold model specification rather than the two regimes tbat is standard in the literature. The extension to more than two regimes recognises the conflicting price pressures that may arise from price change dynamics and disequilibrium errors. This paper demonstrates that two regime models for a given threshold variable can lead to significantly different results to those for three regime models (or four regimes where the data permit). CONSUMER SEARCH AND DYANAMIC PRICE DISPERSION: AN APPLICATION TO GASOLINE MARKETS AMBARISH AND MARIANO :The focus has primarily been on the latter question, and in this article we shift the attention to the former. We argue that identifying the role of consumer search in explaining price dispersion require careful examination of temporal dispersion, a dimension in which predictions from consumer search models and other models are orthogonal. Using a novel test of rank reversals and price spreads among station pairs, we find that the temporal price dispersion at the market level is consistently

higher than for stations at the same street intersection. This is consistent with the theory of consumer search, as the dispersion in the latter group is driven only by product differentiation. We usea unique high-frequency panel data examine equilibrium price dispersion in the U.S. retail gasoline industry. Our results imply that consumers could save as much as 5% by price shopping within a1mile radius. Thefact that search costs deter consumers from price shopping is reinforced by the result that grades of gasoline associated with higher search costs involve greater price dispersion and are less competitive.Premium gasoline has 13% more price dispersion than mid-grade, which itself has 30% more price dispersion than regular gasoline. To the extent that search costs act as a friction, sources that alleviate imperfect information will reduce prices and price dispersion. Centralized sources of information regarding gas prices would achieve this. Existing websites where users periodically liststationsgas prices maybe one step in this direction.53 Moreover, our results indicate that price dispersion decreases when the aggregate level of prices rises,implying that there are less agains to searching at such times. Therefore ,employing a policy of greater search during periods of peak pricing may be suboptimal. Increased information along these lines may help consumers to make better decisions regarding their search strategies. APPORPRIATE RESPONSE TO RISING FUEL PRICES
VICTORIA TRANSPORT POLICY INSTITUTE

Fuel prices are likely to increase in the future.

Motorists are accustomed to low fuel prices and often demand price minimization policies. But such policies impose significant economic, social and environmental costs, by requiring subsidies and increasing total fuel consumption, vehicle travel and land use dispersion. This increases the economic costs of importing petroleum, pollution emissions, congestion, road and parking facility costs, accidents and sprawl. Rather than trying to minimize fuel prices it is better to allow prices to rise and help consumers, businesses and communities reduce total fuel costs by increasing vehicle and transport system efficiency. These solutions provide far larger total benefits. The real problem of higher fuel prices occurs if we fail to change. Vehicle purchase and housing location decisions last years or decades, and consumers tend to apply a high discount rate when evaluating energy savings. As a result, they purchase less efficient vehicles and choose more automobile-dependent locations than what will be optimal during much of these products operating life. The key to avoiding a future crisis is to begin increasing efficiency now. If we treat high current energy prices and try to shield consumers from price increases we encourage inefficiency and brings a future problems. If we begin raising prices now with

increased fuel taxes, and work to make our transport system more efficient, we can avert future problems. The current transport system is inefficient. Large efficiency gains can be achieved in cost effective ways that provide multiple benefits. Harm to consumers and the economy can be minimized by making fuel price increases gradual and predictable, and matching them with policies that improve vehicle efficiency and transport options. The subsidies and policies that improve affordable transport options can do far more to help disadvantaged people while also helping to solve other transport problems. With these recommended policy changes, petroleum prices could double and consumers would spend less on transport than they do now. These policies would change life styles and children would walk and bicycle to school rather than be driven, communities would be more compact, and industrial production would be more resource efficient. These changes can provide significant additional benefits besides just energy cost savings. Testing for Asymmetric Pricing Behaviour in Irish and UK Petrol and Diesel Markets A range of sturctural indicators suggest that Irish retail fuel markets at national level are competitive, with markets characterised by relatively tight margins. Still, the perception persists that the retail transport fuel market in Ireland may not be entirely competitive with consumers not benefitting from falls in cmde oil prices with tbe same rapidity as they are burdened with rises in cmde oil prices. This perception is to a large extent based on anecdotal evidence only, as there is a dearth of studies that have empirically tested whether Irish fuel markets are characterised by asymmetric pricing behaviour. The NCA investigated the movements of refined prices, wholesale prices and retail pump prices in Ireland during 2008. While the NCA concluded that there is little evidence to suggest unwarranted delays in the passing through of refined oil price falls to consumer prices, their study was based on a just one year of data and did not assess the issue using econometric models. In contrast, this paper contains a rigorous econometric assessment of tbe pass-through of oil prices in Irish liquid fuel markets using a long span of data. The UK fuels market is also examined for comparison purposes. The econometric analysis uses threshold autoregressive models to test for asymmetries in the Irish fuel markets. The paper contains a methodological note on the importance of allowing for 3 or 4 regimes in the threshold model specification rather than the two regimes tbat is standard in the literature. The extension to more than two regimes recognises the conflicting price pressures that may arise from price change dynamics and disequilibrium errors. This paper demonstrates that two regime models for a given threshold variable can lead

to significantly different results to those for three regime models (or four regimes where the data permit). In two of the four markets, it may have been concluded there is no asymmetry using conventional models when asymmetry is present. In third market, asymmetry of the opposite direction would have beenfound. Potential Impact of Gasoline Price Increases on U.S. Public Transportation Ridership, 2011 -2012 Potential Impact of Gasoline Price Increases on U.S. Public Transportation Ridership, 2011 -2012 This article is all about the rise in patrol prices in us transportation.Experience over the past decade, backed by several notable research studies, shows that price increases in gasoline cause related increases in public transportation ridership. Based on that information, this report provides a model that projects future increases in public transit ridership that will accompany rising gasoline prices. The analysis reveals if regular gas prices reach $4 a gallon across the nation, as many experts have forecasted, an additional 670 million passenger trips could be expected, resulting in more than 10.8 billion trips per year. If pump prices jump to $5 a gallon, the report predicts an additional 1.5 billion passenger trips can be expected, resulting in more than 11.6 billion trips per year. And if prices were to soar to $6 a gallon, expectations go as high as an additional 2.7 billion passenger trips, resulting in more than 12.9 billion trips per year. Transit systems across America are working hard to address immediate capacity issues which would result. During the 2007 and 2008 gas price spike, 85 percent of transit agencies reported experiencing capacity constraints on parts of their systems. Over one-half of systems operated service crowded beyond their local service standards. This was despite 48 percent of agencies adding service. Thirty-nine percent reported that overcrowded conditions were such that they were turning away passengers. With most states, municipalities and transit systems short of funds due to the recent economic recession, the Congress must act to fund public transportation investment needs: First in the FY 2011 final appropriations bills and second by enacting a well-funded, six year, multimodal surface transportation law such as has been proposed by President Obama in his FY 2012 budget. THE EFFECTS OF RISING FUEL This paper is having discussion of rising fuel costs and the effects on US trade should be prefaced by acknowledging that the US Dollar continues to hold its place of esteem as the International Reserve Currency. All transactions in the world crude oil markets are conducted in US Dollars. All major oil-producing countries receive US Dollars for thei oil, and most of them hold their countries surpluses in the form of US Dollars. Almost 70% of the world's international currency reservesthe money that nations use to finance international tradetakes the form of U.S. dollars. Because the United States has a major share of world trade and financial assets, certain commodities, in particular oil,A are denominated in it. The net result is a large diversified demand for dollars. (Bonboit, George "The Bottom Dollar", The Guardian, April 22, 2003.) The majority of nations choose to conduct their international

trade in US Dollars because of the Dollars relative stability and to protect themselves against financial. These facts strengthen the US Dollar and provide a great economic advantage to the US. It has been argued by some analysts that in essence, the US dollar is backed by oil. The macro-economic effects and importance of the US Dollars role as the International Reserve Currency should not be underestimated. As a result of this position, there exists a large and constant global demand for US Dollars. IEA Working paper Analysis of the Impact of High Oil Prices on the Global Economy This paper reviews how oil prices affect the macro-economy and assesses the extent to which the economies of OECD and developing countries remain vulnerable to a sustained period of higher oil prices. It summarises the findings of a quantitative exercise carried out by the IEA in collaboration with the OECD Economics Department and with the assistance of the International Monetary Fund (IMF) Research Department. Amy Arnis, WSDOT Chief Financial Officer and Assistant Secretary, Strategic Planning and Finance

To review, price elasticity, or price elasticity of demand, is the rate at which demand for a good will change given a change in price. For instance, if the price of a good increases by 10 percent and the demand decreases by 20 percent, then that goods price elasticity is -2. Motor fuel is generally understood to have inelastic demand, that is to say when the price of fuel increases its demand decreases less than proportionally. Inelastic goods are those for which exist few substitutes. Fuel price elasticity is often analyzed over short and long time periods, because over time consumers have more opportunity to respond to a price increase. When fuel price increases, demand decreases primarily due to reduction in driving and improved fuel efficiency. In the short-run, consumers generally reduce their driving and make quick adjustments to improve fuel

efficiency, like switching to a more fuel efficient car in a multi-car household. In the long-run, a consumer may purchase a more fuel efficient car or move closer to work (Litman 2007). WSDOT projects fuel consumption with a model in which fuel price is a key variable. The model estimates fuel price elasticity over its forecast period. Currently the model estimates Washingtons fuel price elasticity to be -0.2, a figure consistent with many researchers. Washingtons fuel consumption also has a strong positive correlation to the growth of the driving-age population and a strong negative correlation to fleet fuel efficiency. Those two variables change slowly over time, and therefore have a greater long-run impact. A search of available information on fuel price elasticity reveals many voices, from the realms of both science and opinion, suggesting the public can bear higher fuel taxes due to fuels inelastic demand. Fuel price elasticity indicates that consumers will not react considerably to substantial price increases. Some articles recommend an additional tax of around 50 cents per gallon. Much of the research on fuel price elasticity focuses on determining related consumer variables, like income level, place of residence (urban or rural), and type of vehicle owned. THE DIFFERENTIAL EFFECT OF GASOLINE PRICES ON NEW AND USED AUTOMOBILE MARKETS The dramatic increase in gasoline prices from close to $1 in 1999 to $4 at their peak in 2008 made it much more expensive for consumers to operate an automobile. In this paper we investigate whether consumers have adjusted to gasoline price changes by altering what automobiles they purchase and what prices they pay. We investigate these effects in both new and used car markets. We find that a $1 increase in gasoline price changes the market shares of the most and least fuel-efficient quartiles of new cars by +20% and -24%, respectively. In contrast, the same gasoline price increase changes the market shares of the most and least fuel-efficient quartiles of used cars by only +3% and -7%, respectively. We find that changes in gasoline prices also change the relative prices of cars in the most fuelefficient and cars in the least fuel-efficient quartile: for new cars the relative price increase for fuel-efficient cars is $363 for a $1 increase in gas prices; for used cars it is $2839. Hence the adjustment of equilibrium market shares and prices in response to changes in usage cost varies dramatically between new and used markets. In the new car market, the adjustment is primarily in market shares, while in the used car market, the adjustment is primarily in prices. We argue that the difference in how gasoline costs affect new and used automobile markets can be explained by differences in the supply characteristicsof new and used cars.Higher Fuel Prices Rising world prices for fuel and food represent a negative terms-of-trade shock for Mozambique.The impacts of these price increases are analyzed using various approaches. Detailed price data show that the world price increases are being transmitted to domestic prices. Short-run net benefit ratio analysis indicates that urban households and households in the southern region of the country are more vulnerable to food price increases. Rural households, particularly in the northern and central parts of Mozambique, often benefit because they sell more food goods than they consume (i.e., net seller). Long-term analysis using a computable

general equilibrium model of Mozambique indicates that the fuel price shock dominates rising food prices from both macroeconomic and poverty perspectives. Here again, negative impacts are greater in urban areas than in rural areas. The importance of agricultural production response in general, and export response in particular, are highlighted in this discussion. Policy analysis reveals difficult tradeoffs between short-run mitigation and long-run growth. Improved agricultural productivity has powerful positive impacts, but remains difficult to achieve and may not address the immediate impacts of higher prices.London, UK This paper gives the main results of a literature review of new empirical studies, published since 1990, updateng work on the effects of price and income on fuel consumption, traffic levels, and where available other indicators including fuel efficiency and car ownership. The results are broadly consistent with several earlier reviews, though not always with current practice. The work was carried out as one of two parallel blind literature reviews, the other being summarized in a companion paper by Graham and Glaister: the results are broadly, though not in every respect, consistent. . Soren Anderson, Ian Parry, James M. Sallee, and Carolyn Fischer Automobile Fuel Economy Standards: Impacts, Efficiency, and Alternatives This paper discusses fuel economy regulations in the United States and other countries. We first describe how these programs affect fuel use and other dimensions of the vehicle fleet. We then review different methodologies for assessing the costs of fuel economy regulations and discuss the policy implications of the results. We also compare the welfare effects of fuel economy standards with those of

fuel taxes and assess whether these two policies complement each other. Finally, we review arguments in favor of a feebate system, which imposes fees on inefficient vehicles and provides rebates for efficient vehicles. References: INDIAN COMMERCIAL VEHICLE SECTOR ICRA rating July 2011 Domestic car sales growth to reach close to a decadal low Sep 2011 CRISIL Alcott, H., and N. Wozny. 2010. Gasoline Prices, Fuel Economy, and the Energy Paradox. Center for Energy and Environmental Policy Research working paper 10-003 Anonym. 2008. OPEC Sec-gen puzzled by causes of oil price rise. Reuters. 22 may. Outlook for Light Vehicle Sales Under A High Oil Price Scenario A White Paper by Global Insight Automotive, 20 August 2008 Meghan R. Busse, Christopher R. Knittel, Florian Zettelmeyer October 2008 Pain at the Pump: How Gasoline Prices Affect Automobile Purchasing McManus, Walter. 2007. "The Link between Gasoline Prices and Vehicle Sales" Business Economics, Hunt, R., P. Isard and D. Laxton 2002. The Macroeconomic Effects of Higher Oil Prices National Institute Economic Review no 179 January 2002. REFERENCES 1) Public Transportation Ridership, 2011 -2012 2)Department of Business Administration Business Administration Student Research THE EFFECTS OF RISING FUEL COSTS ON U.S. TRADE Alan Enzo

Tennessee State University, 3)IEA Working paper 4) Arnis, WSDOT Chief Financial Officer and Assistant Secretary, Strategic Planning and Finance

5)Meghan R. Busse Christopher R. Knittel Florian Zettelmeyer Working Paper THE DIFFERENTIAL EFFECT OF GASOLINE PRICES ON NEW AND USED AUTOMOBILE MARKETS6)IFPRI Discussion Paper Higher Fuel Prices 7)PHIL GOODWIN, JOYCE DARGAY and MARK HANLY ESRC Transport Studies Unit, University College London, London, UK 8) Soren Anderson, Ian Parry, James M. Sallee, and Carolyn Fischer