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ECONOMİCS EXTENDED ESSAY HELP


obladioblada

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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 years
  • I have number of patients in my city who haveillnesses about aiır polution over past 4 years

    How 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!
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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?

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