Automobiles on Steroids: Product Attribute Trade-Offs and Technological Progress in the Automobile Sector
AbstractThis paper estimates the technological progress that has occurred since 1980 in the automobile industry and the trade-offs faced when choosing between fuel economy, weight, and engine power characteristics. The results suggest that if weight, horsepower, and torque were held at their 1980 levels, fuel economy could have increased by nearly 60 percent from 1980 to 2006. Once technological progress is considered, meeting the CAFE standards adopted in 2007 will require halting the trend in weight and engine power characteristics, but little more. In contrast, the standards recently announced by the new administration, while attainable, require nontrivial "downsizing." (JEL: L50, L60)
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 101 (2011)
Issue (Month): 7 (December)
Other versions of this item:
- Christopher R. Knittel, 2009. "Automobiles on Steroids: Product Attribute Trade-Offs and Technological Progress in the Automobile Sector," NBER Working Papers 15162, National Bureau of Economic Research, Inc.
- L5 - Industrial Organization - - Regulation and Industrial Policy
- L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Christopher R. Knittel, 2012.
"Reducing Petroleum Consumption from Transportation,"
NBER Working Papers
17724, National Bureau of Economic Research, Inc.
- Christopher R. Knittel, 2012. "Reducing Petroleum Consumption from Transportation," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 93-118, Winter.
- Lawrence H. Goulder & Mark R. Jacobsen & Arthur A. van Benthem, 2009. "Unintended Consequences from Nested State & Federal Regulations: The Case of the Pavley Greenhouse-Gas-per-Mile Limits," NBER Working Papers 15337, National Bureau of Economic Research, Inc.
- Soren T. Anderson & Ian W. H. Parry & James M. Sallee & Carolyn Fischer, 2011.
"Automobile Fuel Economy Standards: Impacts, Efficiency, and Alternatives,"
Review of Environmental Economics and Policy,
Association of Environmental and Resource Economists, vol. 5(1), pages 89-108, Winter.
- Soren T. Anderson & Carolyn Fischer & Ian Parry & James M. Sallee, 2010. "Automobile Fuel Economy Standards: Impacts, Efficiency, and Alternatives," NBER Working Papers 16370, National Bureau of Economic Research, Inc.
- Anderson, Soren & Parry, Ian & Sallee, James M. & Fischer, Carolyn, 2010. "Automobile Fuel Economy Standards: Impacts, Efficiency, and Alternatives," Discussion Papers dp-10-45, Resources For the Future.
- Antonia Díaz & Luis A. Puch, 2013. "A theory of investment and energy use," Economics Working Papers we1320, Universidad Carlos III, Departamento de Economía.
- McConnell, Virginia, 2013. "The New CAFE Standards: Are They Enough on Their Own?," Discussion Papers dp-13-14, Resources For the Future.
- Lawrence Goulder & Mark Jacobsen & Arthur van Benthem, 2009. "Unintended Consequences from Nested State & Federal Regulations: The Case of the Pavley Greenhouse-Gas-per-Mile Limits," Discussion Papers 08-049, Stanford Institute for Economic Policy Research.
- Lutsey, Nicholas P., 2010. "Review of technical literature and trends related to automobile mass-reduction technology," Institute of Transportation Studies, Working Paper Series qt9t04t94w, Institute of Transportation Studies, UC Davis.
- James M. Sallee & Joel Slemrod, 2010.
"Car Notches: Strategic Automaker Responses to Fuel Economy Policy,"
NBER Working Papers
16604, National Bureau of Economic Research, Inc.
- Sallee, James M. & Slemrod, Joel, 2012. "Car notches: Strategic automaker responses to fuel economy policy," Journal of Public Economics, Elsevier, vol. 96(11), pages 981-999.
- Michael Anderson & Maximilian Auffhammer, 2011. "Pounds that Kill: The External Costs of Vehicle Weight," NBER Working Papers 17170, National Bureau of Economic Research, Inc.
- Klier, Thomas & Linn, Joshua, 2010.
"Corporate Average Fuel Economy Standards and the Market for New Vehicles,"
dp-10-68, Resources For the Future.
- Thomas Klier & Joshua Linn, 2011. "Corporate Average Fuel Economy Standards and the Market for New Vehicles," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 445-462, October.
- Thomas H. Klier & Joshua Linn, 2011. "Corporate average fuel economy standards and the market for new vehicles," Working Paper Series WP-2011-01, Federal Reserve Bank of Chicago.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros) or (Michael P. Albert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.