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A Regression on Climate Policy - The European Commission's Proposal to Reduce CO2 Emissions from Transport

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Author Info

  • Manuel Frondel

    ()

  • Christoph M. Schmidt
  • Colin Vance

    ()

Abstract

As part of its efforts to reach the targets of the Kyoto Protocol, the European Commission is currently considering a new directive to reduce the per-kilometer CO2 emissions of newly registered automobiles. This paper critically assesses this proposal with respect to its economic and technological underpinnings. We argue that the proposal’s reliance on targets based on per-kilometer emissions not only conceals the true costs of compliance and thereby stifles informed public discourse, but is also less cost-effective than alternative measures such as emissions trading.We further examine the proposal’s underlying assumptions, finding that these misrepresent the current state of automotive technology and therefore may overestimate the feasibility of achieving the suggested emissions targets. Alternative targets are consequently proposed that are argued to more accurately reflect the industry's technological evolution to date.

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File URL: http://repec.rwi-essen.de/files/REP_08_044.pdf
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Bibliographic Info

Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0044.

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Length: 23 pages
Date of creation: Apr 2008
Date of revision:
Handle: RePEc:rwi:repape:0044

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Keywords: Technological progress; private automobiles; efficiency standards;

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References

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  1. Manuel Frondel & Jorg Peters & Colin Vance, 2008. "Identifying the Rebound: Evidence from a German Household Panel," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 145-164.
  2. Storchmann, K. -H., 2001. "The impact of fuel taxes on public transport -- an empirical assessment for Germany," Transport Policy, Elsevier, vol. 8(1), pages 19-28, January.
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Cited by:
  1. Colin Vance & Markus Mehlin, 2009. "Tax Policy and CO2 Emissions – An Econometric Analysis of the German Automobile Market," Ruhr Economic Papers 0089, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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