obladioblada Posted July 22, 2013 Report Share Posted July 22, 2013 Hi guys,I am doing my extended essay in economics and my research question is about the taxation on petroleum and effects of it on public health, in my city. I am using negative externality of consumption as the economic theory. For my data and analysis, I did a survey and found out how much more increase is needed for people to stop buying petroleum ?How much would they buy less if there was 10% increase in the price?How much they care about externalities of consumption of petroleum.I also have the data for increase of taxation over last 4 years and the consumption of petroleum over last 4 yearsI have number of patients in my city who haveillnesses about aiır polution over past 4 yearsHow can I analyse this data, should I talk about PED of petroleum if yes, should I include it in the economic theory part? And how can I conclude this essay? I am sorry only im really confused Thanks in advence for any help! Reply Link to post Share on other sites More sharing options...
Luka Petrovic Posted July 23, 2013 Report Share Posted July 23, 2013 The price would have to get very high for people to stop buying petrol. Even if you were charged 8 dollars for a litre of gasoline people would still buy. You say thats insane, but is it really? Lets say you have a car that would go 13 kilometres per litre (This is a Honda civic btw) and then lets say you loaded up the trunk with a bunch of things and seated 5 people. At this point fuel economy would suffer, but you likely still go 8-10 kilometres on this 8 dollar litre of petrol. Now compare this price to any other form of transportation you can find. Ask a guy with a rickshaw/horses/camel/oxen to transport you and your four friends plus all of these things 8-10 kilometres for 8 dollars he will say you are crazy. Essentially we cannot live without petroleum, we would go back to a lifestyle akin to the 1700's within 100 years of loss of petrol. Petrol is highly inelastic especially considering a good portion of it is controlled by a cartel (OPEC).For the first two bullet points have you already collected this data? Reply Link to post Share on other sites More sharing options...
obladioblada Posted July 26, 2013 Author Report Share Posted July 26, 2013 Yes I have all the data that I metnioned above. Can you please help me about the arguments I can make out of this data? How can I analyse it? Thanks a lot! Reply Link to post Share on other sites More sharing options...
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