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

Author

Listed:
  • Frondel, Manuel
  • Schmidt, Christoph M.
  • Vance, Colin

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.

Suggested Citation

  • Frondel, Manuel & Schmidt, Christoph M. & Vance, Colin, 2008. "A Regression on Climate Policy - The European Commission's Proposal to Reduce CO2 Emissions from Transport," Ruhr Economic Papers 44, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:44
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    References listed on IDEAS

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    1. repec:zbw:rwirep:0032 is not listed on IDEAS
    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.
    3. 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.
    4. William J. Baumol & Wallace E. Oates, 1971. "The Use of Standards and Prices for Protection of the Environment," Palgrave Macmillan Books, in: Peter Bohm & Allen V. Kneese (ed.), The Economics of Environment, pages 53-65, Palgrave Macmillan.
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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.
    2. Keller, Rose & Vance, Colin, 2013. "Landscape pattern and car use: Linking household data with satellite imagery," Journal of Transport Geography, Elsevier, vol. 33(C), pages 250-257.
    3. Vance, Colin & Mehlin, Markus, 2009. "Tax Policy and CO2 Emissions – An Econometric Analysis of the German Automobile Market," Ruhr Economic Papers 89, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. repec:zbw:rwirep:0089 is not listed on IDEAS

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    More about this item

    Keywords

    Technological progress; private automobiles; efficiency standards;
    All these keywords.

    JEL classification:

    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • Y10 - Miscellaneous Categories - - Data: Tables and Charts - - - Data: Tables and Charts

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