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Do Market Shares or Technology Explain Rising New Vehicle Fuel Economy?

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  • Khanna, Shefali

    ()
    (Resources for the Future)

  • Linn, Joshua

    ()
    (Resources for the Future)

Abstract

By decreasing gasoline consumption, greater fuel economy could significantly reduce environmental and energy security concerns. In this paper, we show that since the year 2000, technology and market shares have contributed roughly equally to rising new vehicle fuel economy in the United States. We discuss the implications of these patterns for the safety and welfare effects of fuel economy standards.

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File URL: http://www.rff.org/RFF/documents/RFF-DP-13-29.pdf
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Bibliographic Info

Paper provided by Resources For the Future in its series Discussion Papers with number dp-13-29.

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Date of creation: 09 Sep 2013
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Handle: RePEc:rff:dpaper:dp-13-29

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Related research

Keywords: corporate average fuel economy standards; passenger vehicles; fuel savings; vehicle safety; greenhouse gas emissions rate standards;

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  1. Meghan R. Busse & Christopher R. Knittel & Florian Zettelmeyer, 2013. "Are Consumers Myopic? Evidence from New and Used Car Purchases," American Economic Review, American Economic Association, vol. 103(1), pages 220-56, February.
  2. Thomas H. Klier & Joshua Linn, 2009. "The price of gasoline and the demand for fuel economy: evidence from monthly new vehicles sales data," Working Paper Series WP-09-15, Federal Reserve Bank of Chicago.
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