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Paper Information

Journal:   TAHGHIGHAT-E-EGHTESADI   JUNE-SEPTEMBER 2007 , Volume - , Number 79; Page(s) 39 To 58.
 
Paper: 

CONSUMERS OF CAR AND WILLING TO PAY FOR GASOLINE PRICE (METHOD OF CVM)

 
 
Author(s):  AKBARI NEMAT ELAH, SHAJARI HOUSHANG, BIDRAM R.
 
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Abstract: 

Macroeconomics studies the level of activities in a country. These activities are based on four factors: household, firm, government, and foreigners. In the good and service market demand for the above factors are C, I, G, and X-M respectively. In this market goods demanded by consumers are divided in two categories of durable and nondurable goods. Consumers pay two kinds of expenditure for these goods. The first expenditure is fixed expenditure. Fixed expenditure is paid by the consumers regardless of any consumption. The expenditure of purchasing a car is an example of a fixed expenditure. The second kind is the variable expenditure. Variable expenditure is in direct relation with the consumption and increases when the consumption level increases. Expenditure of fuel, insurance, and repairs are examples of variable expenditure. Consumers always use a ratio of fixed and variable expenditure as criteria in purchase and consumption of durable goods. Our objective of this research is to estimate of willing to pay for gasoline price, and we use CVM method. Contingent valuation method is a survey method in which respondents are asked how much they are willing to pay for the use or conservation of natural goods. In this research, for Appling CVM, we have asked 1100 consumers car in seven big city that are Tehran, Isfahan, Mashhad, Shiraz, Ahvaz, Tabriz, and Karaj. The important conclusion is willing to pay 2140 rials for every liter gasoline if the price of car decreases 30 percentages.

 
Keyword(s): FIXED AND VARIABLE EXPENDITURE, WILLING TO PAY, CAR, DURABLE GOODS, CVM
 
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