Costs and benefits of automative fuel economy improvement: A partial analysis
AbstractThis paper describes an exercise in estimating the costs and benefits of technology-based fuel economy improvements for automobiles and light trucks. Benefits quantified include vehicle costs, fuel savings, consumers' surplus effects, the effect of reduced weight on vehicle safety, impacts on emissions of CO2 and criteria pollutants, world oil market and energy security benefits, and the transfer of wealth from U.S. consumers to oil producers. A vehicle stock model represents sales, scrappage and vehicle use effects under three fuel price scenarios. Three alternative fuel economy levels for 2001 are considered, ranging from 32.9 to 36.5 miles per gallon (MPG) for cars and 24.2 to 27.5 MPG for light trucks. Overall, fuel economy improvements of this size are probably cost-effective. The size of the benefit, and even whether there is a benefit, strongly depends on the financial costs of fuel economy improvement and judgments about the values of energy security, emissions, safety, etc. Three sets of values for eight parameters are used to define the sensitivity of costs and benefits to key assumptions. The net present social value (1989$) of costs and benefits ranges from a cost of $11 billion to a benefit of $286 billion. The two largest components are always the direct vehicle costs and fuel savings, but these tend to counterbalance each other for the fuel economy levels examined here. Other major components are the wealth transfer, oil cost savings, CO2 emissions reductions, and energy security benefits. Safety impacts, emissions of criteria pollutants and consumers' surplus effects are relatively minor components.
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 Elsevier in its journal Transportation Research Part A: Policy and Practice.
Volume (Year): 27 (1993)
Issue (Month): 3 (May)
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Dargay, Joyce & Gately, Dermot, 1997. "Vehicle ownership to 2015: Implications for energy use and emissions," Energy Policy, Elsevier, vol. 25(14-15), pages 1121-1127, December.
- Kok, Robert & Annema, Jan Anne & van Wee, Bert, 2011. "Cost-effectiveness of greenhouse gas mitigation in transport: A review of methodological approaches and their impact," Energy Policy, Elsevier, vol. 39(12), pages 7776-7793.
- Michaelis, Laurie, 1997. "Transport sector-strategies markets, technology and innovation," Energy Policy, Elsevier, vol. 25(14-15), pages 1163-1171, December.
- Hyard, Alexandra, 2012. "Cost-benefit analysis according to Sen: An application in the evaluation of transport infrastructures in France," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(4), pages 707-719.
- Michaelis, Laurie & Davidson, Ogunlade, 1996. "GHG mitigation in the transport sector," Energy Policy, Elsevier, vol. 24(10-11), pages 969-984.
- DeCicco, John M., 1995. "Projected fuel savings and emissions reductions from light-vehicle fuel economy standards," Transportation Research Part A: Policy and Practice, Elsevier, vol. 29(3), pages 205-228, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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.