Energy policies for passenger motor vehicles
AbstractThis paper assesses the costs and effectiveness of several energy policies for light-duty motor vehicles in the United States, using a version of the National Energy Modeling System. The policies addressed are higher fuel taxes, tighter vehicle efficiency standards, and financial subsidies and penalties for the purchase of high- and low-efficiency vehicles (feebates). I find that tightening fuel-efficiency standards beyond those currently mandated through 2016, or imposing feebates designed to accomplish similar changes, can achieve by 2030 reductions in energy use by all light-duty passenger vehicles of 7.1–8.4%. A stronger feebate policy has somewhat greater effects, but at a significantly higher unit cost. High fuel taxes, on the order of $2.00 per gallon (2007$), have somewhat greater effects, arguably more favorable cost-effectiveness ratios, and produce their effects much more quickly because they affect the usage rate of both new and used vehicles. Policy costs vary greatly with assumptions about the reason for the apparent myopia commonly observed in consumer demand for fuel efficiency, and with the inclusion or exclusion of ancillary costs of congestion, local air pollution, and accidents.
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): 46 (2012)
Issue (Month): 6 ()
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description
Other versions of this item:
- L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
- R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
- Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ian W. H. Parry & Kenneth A. Small, 2005.
"Does Britain or the United States Have the Right Gasoline Tax?,"
American Economic Review,
American Economic Association, vol. 95(4), pages 1276-1289, September.
- Parry, Ian & Small, Kenneth, 2002. "Does Britain or the United States Have the Right Gasoline Tax?," Discussion Papers dp-02-12-, Resources For the Future.
- White, Michelle J, 2004. "The "Arms Race" on American Roads: The Effect of Sport Utility Vehicles and Pickup Trucks on Traffic Safety," Journal of Law and Economics, University of Chicago Press, vol. 47(2), pages 333-55, October.
- Soren T. Anderson & Ryan Kellogg & James M. Sallee, 2011.
"What Do Consumers Believe About Future Gasoline Prices?,"
NBER Working Papers
16974, National Bureau of Economic Research, Inc.
- Anderson, Soren T. & Kellogg, Ryan & Sallee, James M., 2013. "What do consumers believe about future gasoline prices?," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 383-403.
- Antonio M. Bento & Lawrence H. Goulder & Mark R. Jacobsen & Roger H. von Haefen, 2009.
"Distributional and Efficiency Impacts of Increased US Gasoline Taxes,"
American Economic Review,
American Economic Association, vol. 99(3), pages 667-99, June.
- Bento, Antonio M. & Goulder, Lawrence H. & Jacobsen, Mark R. & von Haefen, Roger H., 2007. "Distributional and Efficiency Impacts of Increased U.S. Gasoline Taxes," Working Papers 127021, Cornell University, Department of Applied Economics and Management.
- James M. Sallee, 2011.
"The Taxation of Fuel Economy,"
Tax Policy and the Economy,
University of Chicago Press, vol. 25(1), pages 1 - 38.
- 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.
- 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.
- Kenneth A. Small & Kurt Van Dender, 2007.
"Fuel Efficiency and Motor Vehicle Travel: The Declining Rebound Effect,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Number 1), pages 25-52.
- Kenneth A. Small & Kurt Van Dender, 2006. "Fuel Efficiency and Motor Vehicle Travel: The Declining Rebound Effect," Working Papers 050603, University of California-Irvine, Department of Economics.
- Ross Morrow, W. & Gallagher, Kelly Sims & Collantes, Gustavo & Lee, Henry, 2010. "Analysis of policies to reduce oil consumption and greenhouse-gas emissions from the US transportation sector," Energy Policy, Elsevier, vol. 38(3), pages 1305-1320, March.
- Johnson, Kenneth C., 2006. "Feebates: An effective regulatory instrument for cost-constrained environmental policy," Energy Policy, Elsevier, vol. 34(18), pages 3965-3976, December.
- 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.
- de Bovenberg, A Lans & Mooij, Ruud A, 1994.
"Environmental Levies and Distortionary Taxation,"
American Economic Review,
American Economic Association, vol. 84(4), pages 1085-89, September.
- Greene, David L. & Patterson, Philip D. & Singh, Margaret & Li, Jia, 2005. "Feebates, rebates and gas-guzzler taxes: a study of incentives for increased fuel economy," Energy Policy, Elsevier, vol. 33(6), pages 757-775, April.
- Andrew N. Kleit, 2004. "Impacts of Long-Range Increases in the Fuel Economy (CAFE) Standard," Economic Inquiry, Western Economic Association International, vol. 42(2), pages 279-294, April.
- Lawrence H. Goulder & Roberton C. Williams III, 2003. "The Substantial Bias from Ignoring General Equilibrium Effects in Estimating Excess Burden, and a Practical Solution," Journal of Political Economy, University of Chicago Press, vol. 111(4), pages 898-927, August.
- Meghan R. Busse & Christopher R. Knittel & Florian Zettelmeyer, 2009. "Pain at the Pump: The Differential Effect of Gasoline Prices on New and Used Automobile Markets," NBER Working Papers 15590, National Bureau of Economic Research, Inc.
- Brozovic, Nicholas & Ando, Amy Whritenour, 2009. "Defensive purchasing, the safety (dis)advantage of light trucks, and motor-vehicle policy effectiveness," Transportation Research Part B: Methodological, Elsevier, vol. 43(5), pages 477-493, June.
- Antje-Mareike Dietrich & Gernot Sieg, 2013.
"Welfare Effects of Subsidizing a Dead-End Network of Less Polluting Vehicles,"
20, Institute of Transport Economics, University of Muenster.
- Dietrich, Antje-Mareike & Sieg, Gernot, 2011. "Welfare effects of subsidizing a dead-end network of less polluting vehicles," MPRA Paper 33780, University Library of Munich, Germany.
- Dietrich, Antje-Mareike & Sieg, Gernot, 2011. "Welfare effects of subsidizing a dead-end network of less polluting vehicles," Economics Department Working Paper Series 12, Technische Universität Braunschweig, Economics Department.
- Tsvetanov, Tsvetan & Segerson, Kathleen, 2013. "Re-evaluating the role of energy efficiency standards: A behavioral economics approach," Journal of Environmental Economics and Management, Elsevier, vol. 66(2), pages 347-363.
- Baltas, George & Saridakis, Charalampos, 2013. "An empirical investigation of the impact of behavioural and psychographic consumer characteristics on car preferences: An integrated model of car type choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 54(C), pages 92-110.
- Al-Ghandoor, Ahmed & Jaber, Jamal & Al-Hinti, Ismael & Abdallat, Yousef, 2013. "Statistical assessment and analyses of the determinants of transportation sector gasoline demand in Jordan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 50(C), pages 129-138.
- van der Vooren, A. & Alkemade, F. & Hekkert, M.P., 2013. "Environmental performance and firm strategies in the dutch automotive sector," Transportation Research Part A: Policy and Practice, Elsevier, vol. 54(C), pages 111-126.
- Ko, Ahyun & Myung, Cha-Lee & Park, Simsoo & Kwon, Sangil, 2014. "Scenario-based CO2 emissions reduction potential and energy use in Republic of Korea’s passenger vehicle fleet," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 346-356.
- Martin, Elliot & Shaheen, Susan & Lipman, Timothy & Camel, Madonna, 2014. "Evaluating the public perception of a feebate policy in California through the estimation and cross-validation of an ordinal regression model," Transport Policy, Elsevier, vol. 33(C), pages 144-153.
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.