Are car manufacturers on the way to reduce CO2 emissions?: A DEA approach
One of the pillars of the fight against climate change is reducing the amount of greenhouse gases that are emitted into the atmosphere. In that regard, curtailing CO2 emissions from transport activities is a major objective. In its attempts of “decarbonising” transport, the European Commission set in 2009 different emission limits on the vehicles sold in Europe. With this background, this paper aims to test the ability of the major car manufacturers to meet these present and future targets with the existing technological trends. To that end, we provide an in-depth analysis on the temporal evolution of emission efficiencies in the Spanish car market. The well-known DEA-Malmquist method is applied over a large sample of car models sold in Spain between 2004 and 2010. A second-stage regression allows us to identify the main drivers of efficiency, catch-up and technical change over the period. Finally, the estimated trends are extrapolated to predict future emission levels for the car manufacturers. Using post-regulation rates of technical change, results show that the vast majority of companies would meet the 2015 target, 27% of the current market would meet the 2020 target, and around 3% would be able to comply with the 2025 target. Thus, since all targets are technologically feasible, stricter regulation is the recommended approach to encourage manufacturers to meet the goals set by the European Commission.
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.
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.
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.:
- Christos Papahristodoulou, 1997. "A DEA model to evaluate car efficiency," Applied Economics, Taylor & Francis Journals, vol. 29(11), pages 1493-1508.
- Bert Balk, 2001. "Scale Efficiency and Productivity Change," Journal of Productivity Analysis, Springer, vol. 15(3), pages 159-183, May.
- Sprei, Frances & Karlsson, Sten, 2013. "Energy efficiency versus gains in consumer amenities—An example from new cars sold in Sweden," Energy Policy, Elsevier, vol. 53(C), pages 490-499.
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
- Fontaras, Georgios & Samaras, Zissis, 2010. "On the way to 130Â gÂ CO2/km--Estimating the future characteristics of the average European passenger car," Energy Policy, Elsevier, vol. 38(4), pages 1826-1833, April.
- Karplus, Valerie J. & Paltsev, Sergey & Babiker, Mustafa & Reilly, John M., 2013. "Should a vehicle fuel economy standard be combined with an economy-wide greenhouse gas emissions constraint? Implications for energy and climate policy in the United States," Energy Economics, Elsevier, vol. 36(C), pages 322-333.
- Inha Oh & Jeong-Dong Lee & Seogwon Hwang & Almas Heshmati, 2010.
"Analysis of product efficiency in the Korean automobile market from a consumer’s perspective,"
Springer, vol. 38(1), pages 119-137, February.
- Oh, Inha & Lee, Jeong-Dong & Hwang, Seogwon & Heshmati, Almas, 2006. "Analysis of Product Efficiency in the Korean Automobile Market from a Consumer’s Perspective," Ratio Working Papers 95, The Ratio Institute.
- Berggren, Christian & Magnusson, Thomas, 2012. "Reducing automotive emissions—The potentials of combustion engine technologies and the power of policy," Energy Policy, Elsevier, vol. 41(C), pages 636-643.
- David Greene, 2010. "Why the New Market for New Passenger Cars Generally Undervalues Fuel Economy," OECD/ITF Joint Transport Research Centre Discussion Papers 2010/6, OECD Publishing.
- Hampf, Benjamin & Krüger, Jens J., 2010. "Technical efficiency of automobiles: A nonparametric approach incorporating carbon dioxide emissions," Darmstadt Discussion Papers in Economics 198, Darmstadt University of Technology, Department of Law and Economics.
- Ryan, Lisa & Ferreira, Susana & Convery, Frank, 2009. "The impact of fiscal and other measures on new passenger car sales and CO2 emissions intensity: Evidence from Europe," Energy Economics, Elsevier, vol. 31(3), pages 365-374, May.
- Clerides, Sofronis & Zachariadis, Theodoros, 2008. "The effect of standards and fuel prices on automobile fuel economy: An international analysis," Energy Economics, Elsevier, vol. 30(5), pages 2657-2672, September.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
- Koo, Yoonmo & Kim, Chang Seob & Hong, Junhee & Choi, Ie-Jung & Lee, Jongsu, 2012. "Consumer preferences for automobile energy-efficiency grades," Energy Economics, Elsevier, vol. 34(2), pages 446-451.
- Fontaras, Georgios & Samaras, Zissis, 2007. "A quantitative analysis of the European Automakers' voluntary commitment to reduce CO2 emissions from new passenger cars based on independent experimental data," Energy Policy, Elsevier, vol. 35(4), pages 2239-2248, April. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:38:y:2013:i:c:p:77-86. 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: (Dana Niculescu)
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.