Corporate Average Fuel Economy Standards and the Market for New Vehicles
AbstractThis article presents an overview of the economics literature on the effect of corporate average fuel economy (CAFE) standards on the new vehicle market. Since 1978, CAFE has imposed fuel economy standards for cars and light trucks sold in the U.S. market. This article reviews the history of the standards, followed by a discussion of the major upcoming changes in implementation and stringency. It describes strategies that firms can use to meet the standards and reviews the CAFE literature as it applies to the new vehicle market. The review concludes by highlighting areas for future research in light of the upcoming changes to CAFE.
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Bibliographic InfoArticle provided by Annual Reviews in its journal Annual Review of Resource Economics.
Volume (Year): 3 (2011)
Issue (Month): 1 (October)
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Other versions of this item:
- Klier, Thomas & Linn, Joshua, 2010. "Corporate Average Fuel Economy Standards and the Market for New Vehicles," Discussion Papers dp-10-68, Resources For the Future.
- 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.
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
- L5 - Industrial Organization - - Regulation and Industrial Policy
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