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The Effects of the Corporate Average Fuel Efficiency Standards in the US

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Author Info
Goldberg, Pinelopi Koujianou

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Abstract

This paper examines the effects of the Corporate Average Fuel Economy Standards (CAFE) on automobile sales, prices, and fuel consumption. First, a discrete choice model of automobile demand and a continuous model of vehicle utilization are estimated using micro data from the Consumer Expenditure Survey for 1984-90. Next, the demand side model is combined with a model of oligopoly and product differentiation on the supply side. With these elements in place, the effects of the CAFE regulation are assessed through simulations and compared to the effects of alternative policy instruments, such as an increase in gasoline tax. Copyright 1998 by Blackwell Publishing Ltd

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Industrial Economics.

Volume (Year): 46 (1998)
Issue (Month): 1 (March)
Pages: 1-33
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Handle: RePEc:bla:jindec:v:46:y:1998:i:1:p:1-33

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  14. Plott, Charles R. & Katz, Gabriel, . "An internal fuel efficiency credit market mechanism for meeting the CAFE Standard: Internalizing a regulation caused externality," Working Papers 1297, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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  16. Shanjun Li & Roger von Haefen & Christopher Timmins, 2008. "How Do Gasoline Prices Affect Fleet Fuel Economy?," NBER Working Papers 14450, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  19. Sofronis Clerides & Theodoros Zachariadis, 2006. "Are standards Effective in Improving Automobile Fuel Economy?," University of Cyprus Working Papers in Economics 6-2006, University of Cyprus Department of Economics. [Downloadable!]
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