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A study on the effects of the CAFE standard on consumers

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  • Jun, Seung-Pyo
  • Yoo, Hyoung Sun
  • Kim, Ji-Hui

Abstract

In this paper, we analyzed how the CAFE standard has affected improvements in the fuel economy of vehicles, as examined in other preceding studies, but in addition, we also analyzed how these standards have affected the level of consumer interest in fuel economy. Our goal was to determine what effects the government intervention has had on consumers, and whether such intervention ought to be continued. The results showed that not only has the CAFE standard had a direct and significant impact on improving fuel economy and increasing the market share of fuel-efficient vehicles, it has also boosted the development of technologies for enhancing fuel economy and raised consumer interest in fuel economy, thus indirectly contributing to overcoming market failure. The significance of this study is that we used publically available observed data and analyzed the recent impact of the CAFE standard specifically with a focus on the behavior and strategies exhibited by consumers and automakers. Another significance of this study is that it extends our purview to examine the effects that the CAFE standard has had in other countries (Korea).

Suggested Citation

  • Jun, Seung-Pyo & Yoo, Hyoung Sun & Kim, Ji-Hui, 2016. "A study on the effects of the CAFE standard on consumers," Energy Policy, Elsevier, vol. 91(C), pages 148-160.
    • Handle: RePEc:eee:enepol:v:91:y:2016:i:c:p:148-160
    DOI: 10.1016/j.enpol.2016.01.004
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    References listed on IDEAS

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    Cited by:

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    2. Wang, Sinan & Chen, Kangda & Zhao, Fuquan & Hao, Han, 2019. "Technology pathways for complying with Corporate Average Fuel Consumption regulations up to 2030: A case study of China," Applied Energy, Elsevier, vol. 241(C), pages 257-277.
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    5. Hyoung Sun Yoo & Chul Lee & Seung-Pyo Jun, 2018. "The Characteristics of SMEs Preferring Cooperative Research and Development Support from the Government: The Case of Korea," Sustainability, MDPI, vol. 10(9), pages 1-18, August.
    6. Li, Jizi & Ku, Yaoyao & Yu, Yue & Liu, Chunling & Zhou, Yuping, 2020. "Optimizing production of new energy vehicles with across-chain cooperation under China’s dual credit policy," Energy, Elsevier, vol. 194(C).
    7. Jolana Stejskalova, 2023. "We investigated the link between stock returns of automobile companies, Fama French factors, and behavioral attention, represented by demand for a selected car brand belonging to an automobile company," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 71(3), pages 202-221, March.
    8. Jun, Seung-Pyo & Yoo, Hyoung Sun & Choi, San, 2018. "Ten years of research change using Google Trends: From the perspective of big data utilizations and applications," Technological Forecasting and Social Change, Elsevier, vol. 130(C), pages 69-87.

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