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Are car manufacturers on the way to reduce CO2 emissions?: A DEA approach

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  • Voltes-Dorta, Augusto
  • Perdiguero, Jordi
  • Jiménez, Juan Luis

Abstract

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.

Suggested Citation

  • Voltes-Dorta, Augusto & Perdiguero, Jordi & Jiménez, Juan Luis, 2013. "Are car manufacturers on the way to reduce CO2 emissions?: A DEA approach," Energy Economics, Elsevier, vol. 38(C), pages 77-86.
  • Handle: RePEc:eee:eneeco:v:38:y:2013:i:c:p:77-86
    DOI: 10.1016/j.eneco.2013.03.005
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    2. Huang, Chin-wei & Chiu, Yung-ho & Fang, Wei-ta & Shen, Neng, 2014. "Assessing the performance of Taiwan’s environmental protection system with a non-radial network DEA approach," Energy Policy, Elsevier, vol. 74(C), pages 547-556.
    3. Jordi Perdiguero & Juan Luis Jiménez, 2012. "“Policy options for the promotion of electric vehicles: a review”," IREA Working Papers 201208, University of Barcelona, Research Institute of Applied Economics, revised Mar 2012.
    4. Kangjuan Lv & Anyu Yu & Yiwen Bian, 2017. "Regional energy efficiency and its determinants in China during 2001–2010: a slacks-based measure and spatial econometric analysis," Journal of Productivity Analysis, Springer, vol. 47(1), pages 65-81, February.
    5. Weibin Lin & Bin Chen & Lina Xie & Haoran Pan, 2015. "Estimating Energy Consumption of Transport Modes in China Using DEA," Sustainability, MDPI, Open Access Journal, vol. 7(4), pages 1-15, April.
    6. repec:gam:jsusta:v:10:y:2018:i:1:p:184-:d:126774 is not listed on IDEAS
    7. repec:eee:eneeco:v:70:y:2018:i:c:p:536-544 is not listed on IDEAS
    8. González, Eduardo & Cárcaba, Ana & Ventura, Juan, 2015. "How car dealers adjust prices to reach the product efficiency frontier in the Spanish automobile market," Omega, Elsevier, vol. 51(C), pages 38-48.
    9. repec:gam:jsusta:v:10:y:2018:i:6:p:1841-:d:150258 is not listed on IDEAS

    More about this item

    Keywords

    Climate change; Energy efficiency; DEA-Malmquist; Technological change;

    JEL classification:

    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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