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A regression on climate policy: The European Commission’s legislation to reduce CO2 emissions from automobiles

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

Abstract

As part of its efforts to reach the targets of the Kyoto Protocol, in April 2009 the European Commission enacted new legislation to reduce the per-kilometer CO2 emissions of newly registered automobiles. This paper critically assesses this legislation with respect to its economic and technological underpinnings. First, we argue that the reliance on targets based on per-kilometer emissions not only conceals the true cost of compliance and thereby stifles informed public discourse, but is also less cost-effective than alternative measures such as emissions trading. Second, the emission targets stipulated in this legislation are based on linear-regression methods that we demonstrate to be poorly justified and misleading. Using instead stochastic-frontier analysis, which is argued to more accurately reflect the industry’s technological status quo, alternative targets are consequently proposed.

Suggested Citation

  • Frondel, Manuel & Schmidt, Christoph M. & Vance, Colin, 2011. "A regression on climate policy: The European Commission’s legislation to reduce CO2 emissions from automobiles," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(10), pages 1043-1051.
    • Handle: RePEc:eee:transa:v:45:y:2011:i:10:p:1043-1051
    DOI: 10.1016/j.tra.2009.12.001
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    References listed on IDEAS

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    1. Sterner, Thomas, 2007. "Fuel taxes: An important instrument for climate policy," Energy Policy, Elsevier, vol. 35(6), pages 3194-3202, June.
    2. Manuel Frondel & Christoph M. Schmidt, 2006. "The Empirical Assessment of Technology Differences: Comparing the Comparable," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 186-192, February.
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    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.
    5. Manuel Frondel & Colin Vance, 2009. "Do High Oil Prices Matter? Evidence on the Mobility Behavior of German Households," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(1), pages 81-94, May.
    6. Kumbhakar,Subal C. & Lovell,C. A. Knox, 2003. "Stochastic Frontier Analysis," Cambridge Books, Cambridge University Press, number 9780521666633, Enero-Abr.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Frondel, Manuel, 2024. "Die hohen unbekannten CO₂-Vermeidungskosten ordnungsrechtlicher Klimaschutzmaßnahmen: Empirische Beispiele aus Deutschland und Europa," RWI Materialien 168, RWI - Leibniz-Institut für Wirtschaftsforschung.
    2. Frondel, Manuel & Vance, Colin, 2011. "Future Pain at the Diesel Pump? Potential Effects of the European Commission's Energy Taxation Proposal," Ruhr Economic Papers 280, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Saket, Mohammad Javad & Maleki, Abbas & Hezaveh, Erfan Doroudgar & Karimi, Mohammad Sadegh, 2019. "Institutional analysis on impediments over fuel consumption reduction at Iran's transportation niches," Energy Policy, Elsevier, vol. 129(C), pages 861-867.
    4. Gössling, Stefan, 2013. "Urban transport transitions: Copenhagen, City of Cyclists," Journal of Transport Geography, Elsevier, vol. 33(C), pages 196-206.
    5. Vance, Colin & Frondel, Manuel, 2015. "From fuel taxation to efficiency standards: A wrong turn in European climate protection?," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113171, Verein für Socialpolitik / German Economic Association.
    6. Manuel Frondel & Colin Vance, 2018. "Drivers’ response to fuel taxes and efficiency standards: evidence from Germany," Transportation, Springer, vol. 45(3), pages 989-1001, May.
    7. Frondel, Manuel & Ritter, Nolan & Vance, Colin, 2012. "Heterogeneity in the rebound effect: Further evidence for Germany," Energy Economics, Elsevier, vol. 34(2), pages 461-467.
    8. Frondel, Manuel & Schmidt, Christoph M. & aus dem Moore, Nils, 2012. "Marktwirtschaftliche Energiewende: Ein Wettbewerbsrahmen für die Stromversorgung mit alternativen Technologien. Ein Projekt im Auftrag der Initiative Neue Soziale Marktwirtschaft," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 69954.
    9. Frondel, Manuel & Marggraf, Clemens & Sommer, Stephan & Vance, Colin, 2021. "Reducing vehicle cold start emissions through carbon pricing: Evidence from Germany," Ruhr Economic Papers 896, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    10. Manuel Frondel & Colin Vance, 2011. "Future Pain at the Diesel Pump? Potential Eff ects of the European Commission’s Energy Taxation Proposal," Ruhr Economic Papers 0280, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    11. Frondel, Manuel & Vance, Colin, 2013. "Re-Identifying the Rebound: What About Asymmetry?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 34(4), pages 42-54.
    12. Zimmer, Anne & Koch, Nicolas, 2017. "Fuel consumption dynamics in Europe: Tax reform implications for air pollution and carbon emissions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 22-50.
    13. Manuel Frondel, 2014. "Teuer und ineffizient: Die Emissionsminderung der EU," RWI Positionen, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, pages 17, December.
    14. Alexander Kihm & Colin Vance, 2014. "The Determinants of Equity Transmission Between the New and Used Car Markets – A Hedonic Analysis," Ruhr Economic Papers 0521, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    15. Mabit, Stefan L., 2014. "Vehicle type choice under the influence of a tax reform and rising fuel prices," Transportation Research Part A: Policy and Practice, Elsevier, vol. 64(C), pages 32-42.
    16. repec:aen:journl:ej34-4-03 is not listed on IDEAS
    17. Frondel, Manuel, 2014. "Teuer und ineffizient: Die Emissionsminderung der EU," RWI Positionen 62, RWI - Leibniz-Institut für Wirtschaftsforschung.
    18. Manuel Frondel & Colin Vance, 2013. "Fuel Taxes versus Efficiency Standards – An Instrumental Variable Approach," Ruhr Economic Papers 0445, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    19. Montag, Josef, 2015. "The simple economics of motor vehicle pollution: A case for fuel tax," Energy Policy, Elsevier, vol. 85(C), pages 138-149.
    20. Alexander Kihm & Colin Vance, 2016. "The determinants of equity transmission between the new and used car markets: a hedonic analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(10), pages 1250-1258, October.
    21. Frondel, Manuel & Vance, Colin, 2013. "Fuel Taxes versus Efficiency Standards – An Instrumental Variable Approach," Ruhr Economic Papers 445, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    22. Sergey Paltsev & Y.-H. Henry Chen & Valerie Karplus & Paul Kishimoto & John Reilly & Andreas Löschel & Kathrine Graevenitz & Simon Koesler, 2018. "Reducing CO2 from cars in the European Union," Transportation, Springer, vol. 45(2), pages 573-595, March.
    23. Manuel Frondel & Colin Vance, 2011. "Re-Identifying the Rebound – What About Asymmetry?," Ruhr Economic Papers 0276, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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