Advanced Search
MyIDEAS: Login to save this article or follow this journal

Automobile Fuel Economy Standards: Impacts, Efficiency, and Alternatives

Contents:

Author Info

  • Soren T. Anderson
  • Ian W. H. Parry
  • James M. Sallee
  • Carolyn Fischer

Abstract

This article discusses automobile fuel economy standards in the United States and other countries. We first describe how these programs affect the automobile market, including impacts on fuel consumption and other dimensions of the vehicle fleet. We then review two different methodologies for assessing the costs of fuel economy programs--engineering and market-based approaches--and discuss what the results of these assessments imply for policy. Next we compare the welfare effects of fuel economy standards and fuel taxes and discuss whether these two types of policies can be complementary. Finally, we review arguments for transitioning away from fuel economy regulations and toward a "feebate" system, a policy approach that imposes fees on vehicles that are fuel inefficient and provides rebates to those that are fuel efficient. Copyright 2011, Oxford University Press.

Download Info

If 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.
File URL: http://hdl.handle.net/10.1093/reep/req021
Download Restriction: Access to full text is restricted to subscribers.

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 Info

Article provided by Association of Environmental and Resource Economists in its journal Review of Environmental Economics and Policy.

Volume (Year): 5 (2011)
Issue (Month): 1 (Winter)
Pages: 89-108

as in new window
Handle: RePEc:oup:renvpo:v:5:y:2011:i:1:p:89-108

Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Email:
Web page: http://reep.oxfordjournals.org/
More information through EDIRC

Order Information:
Web: http://www.oup.co.uk/journals

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
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.:
as in new window
  1. Soren T. Anderson & James M. Sallee, 2009. "Using Loopholes to Reveal the Marginal Cost of Regulation: The Case of Fuel-Economy Standards," Working Papers, Harris School of Public Policy Studies, University of Chicago 0901, Harris School of Public Policy Studies, University of Chicago.
  2. Tol, Richard S. J., 2008. "The Economic Impact of Climate Change," Papers, Economic and Social Research Institute (ESRI) WP255, Economic and Social Research Institute (ESRI).
  3. Fischer, Carolyn, 2005. "On the importance of the supply side in demand-side management," Energy Economics, Elsevier, Elsevier, vol. 27(1), pages 165-180, January.
  4. Aldy, Joseph E. & Krupnick, Alan J. & Newell, Richard G. & Parry, Ian W.H. & Pizer, William A., 2009. "Designing Climate Mitigation Policy," Discussion Papers, Resources For the Future dp-08-16, Resources For the Future.
  5. Sarah E. West & Roberton C. Williams III, 2005. "The Cost of Reducing Gasoline Consumption," American Economic Review, American Economic Association, American Economic Association, vol. 95(2), pages 294-299, May.
  6. Thomas Klier & Joshua Linn, 2012. "New‐vehicle characteristics and the cost of the Corporate Average Fuel Economy standard," RAND Journal of Economics, RAND Corporation, RAND Corporation, vol. 43(1), pages 186-213, 03.
  7. Fischer, Carolyn, 2008. "Comparing flexibility mechanisms for fuel economy standards," Energy Policy, Elsevier, Elsevier, vol. 36(8), pages 3106-3114, August.
  8. Brown, Stephen P.A. & Huntington, Hillard G., 2010. "Reassessing the Oil Security Premium," Discussion Papers, Resources For the Future dp-10-05, Resources For the Future.
  9. 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, American Economic Association, vol. 99(3), pages 667-99, June.
  10. Christopher R. Knittel, 2011. "Automobiles on Steroids: Product Attribute Trade-Offs and Technological Progress in the Automobile Sector," American Economic Review, American Economic Association, American Economic Association, vol. 101(7), pages 3368-99, December.
  11. Dominika Kalinowska & Kerim Keser & Uwe Kunert, 2009. "CO2 Based Taxation on Cars Is Rising in Europe," Weekly Report, DIW Berlin, German Institute for Economic Research, DIW Berlin, German Institute for Economic Research, vol. 5(23), pages 159-170.
  12. Parry, Ian & Fischer, Carolyn & Harrington, Winston, 2004. "Should Corporate Average Fuel Economy (CAFE) Standards Be Tightened?," Discussion Papers, Resources For the Future dp-04-53, Resources For the Future.
  13. Li, Shanjun, 2009. "Traffic Safety and Vehicle Choice: Quantifying the Effects of the "Arms Race" on American Roads," Discussion Papers, Resources For the Future dp-09-33, Resources For the Future.
  14. Richard S. J. Tol, 2009. "The Economic Effects of Climate Change," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 23(2), pages 29-51, Spring.
  15. Austin, David & Dinan, Terry, 2005. "Clearing the air: The costs and consequences of higher CAFE standards and increased gasoline taxes," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 562-582, November.
  16. Sarah E. West & Roberton C. Williams III, 2002. "Estimates from a Consumer Demand System: Implications for the Incidence of Environmental Taxes," NBER Working Papers 9152, National Bureau of Economic Research, Inc.
  17. Kahn, James A, 1986. "Gasoline Prices and the Used Automobile Market: A Rational Expectations Asset Price Approach," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 101(2), pages 323-39, May.
  18. 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, Elsevier, vol. 33(6), pages 757-775, April.
  19. Philippe Barla & Stef Proost, 2008. "Automobile fuel efficiency policies with international innovation spillovers," Center for Economic Studies - Discussion papers, Katholieke Universiteit Leuven, Centrum voor Economische Studiën ces0817, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  20. Fischer, Carolyn, 2010. "Imperfect Competition, Consumer Behavior, and the Provision of Fuel Efficiency in Light-Duty Vehicles," Discussion Papers, Resources For the Future dp-10-60, Resources For the Future.
  21. West, Sarah E., 2004. "Distributional effects of alternative vehicle pollution control policies," Journal of Public Economics, Elsevier, Elsevier, vol. 88(3-4), pages 735-757, March.
  22. Steve Newbold & Charles Griffiths & Christopher C. Moore & Ann Wolverton & Elizabeth Kopits, 2010. "The "Social Cost of Carbon" Made Simple," NCEE Working Paper Series, National Center for Environmental Economics, U.S. Environmental Protection Agency 201007, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Aug 2010.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Adriaan Perrels & Tarja Tuovinen, 2012. "The Effectiveness of Differentiation of the Finnish Car Purchase Tax according to Carbon Dioxide Emission Performance," Research Reports 168, Government Institute for Economic Research Finland (VATT).
  2. Huse, Cristian, 2014. "Fast and Furious (and Dirty): How Asymmetric Regulation May Hinder Environmental Policy," MPRA Paper 48909, University Library of Munich, Germany.
  3. Klier, Thomas & Linn, Joshua, 2012. "Using Vehicle Taxes to Reduce Carbon Dioxide Emissions Rates of New Passenger Vehicles: Evidence from France, Germany, and Sweden," Discussion Papers, Resources For the Future dp-12-34, Resources For the Future.
  4. Werner Antweiler & Sumeet Gulati, 2013. "Market-Based Policies for Green Motoring in Canada," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 39(s2), pages 81-94, August.
  5. Adamou, Adamos & Clerides, Sofronis & Zachariadis, Theodoros, 2012. "Designing Carbon Taxation Schemes for Automobiles: A Simulation Exercise for Germany," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8782, C.E.P.R. Discussion Papers.
  6. Adamos Adamou & Sofronis Clerides & Theodoros Zachariadis, 2012. "Assessment of CO2-Oriented Vehicle Tax Reforms: A Case Study of Greece," University of Cyprus Working Papers in Economics, University of Cyprus Department of Economics 04-2012, University of Cyprus Department of Economics.
  7. Huse, Cristian & Lucinda, Claudio, 2013. "The Market Impact and the Cost of Environmental Policy: Evidence from the Swedish Green Car Rebate," MPRA Paper 48905, University Library of Munich, Germany.
  8. Klier, Thomas & Linn, Joshua, 2013. "Fuel prices and new vehicle fuel economy—Comparing the United States and Western Europe," Journal of Environmental Economics and Management, Elsevier, vol. 66(2), pages 280-300.
  9. Rozenberg, Julie & Vogt-Schilb, Adrien & Hallegatte, Stephane, 2014. "Transition to clean capital, irreversible investment and stranded assets," Policy Research Working Paper Series, The World Bank 6859, The World Bank.
  10. Massimo Anna Alberini & Massimo Filippini & Markus Bareit, 2014. "Does the Swiss Car Market Reward Fuel Efficient Cars? Evidence from Hedonic Pricing Regressions, Matching and a Regression Discontinuity Design," CER-ETH Economics working paper series, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich 14/190, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  11. 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.
  12. Hallegatte, Stephane & Fay, Marianne & Vogt-Schilb, Adrien, 2013. "Green industrial policies : when and how," Policy Research Working Paper Series, The World Bank 6677, The World Bank.
  13. Julie Rozenberg & Adrien Vogt-Schilb & Hallegatte Stéphane, 2013. "Efficiency and Acceptability of Climate Policies: Race Against the Lock-ins," Post-Print, HAL hal-00916861, HAL.
  14. Clifford Winston, 2013. "On the Performance of the U.S. Transportation System: Caution Ahead," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 51(3), pages 773-824, September.
  15. Adamos Adamou & Sofronis Clerides & Theodoros Zachariadis, 2012. "Trade-offs in CO2-Oriented Vehicle Tax Reforms: A Case Study of Greece," Working Paper Series, The Rimini Centre for Economic Analysis 33_12, The Rimini Centre for Economic Analysis.
  16. 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.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:oup:renvpo:v:5:y:2011:i:1:p:89-108. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).

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.