A regression on climate policy: The European Commission’s legislation to reduce CO2 emissions from automobiles
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.
Volume (Year): 45 (2011)
Issue (Month): 10 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
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.:
- Sterner, Thomas, 2007. "Fuel taxes: An important instrument for climate policy," Energy Policy, Elsevier, vol. 35(6), pages 3194-3202, June.
- 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.
- Schmidt, Christoph M. & Frondel, Manuel, 2002. "The empirical assessment of technology differences: comparing the comparable," ZEW Discussion Papers 02-63, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- 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.
- Frondel, Manuel & Vance, Colin, 2008. "Do High Oil Prices Matter? – Evidence on the Mobility Behavior of German Households," Ruhr Economic Papers 72, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- 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.
- Frondel, Manuel & Peters, Jörg & Vance, Colin, 2007. "Identifying the Rebound - Evidence from a German Household Panel," Ruhr Economic Papers 32, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- Kumbhakar,Subal C. & Lovell,C. A. Knox, 2003. "Stochastic Frontier Analysis," Cambridge Books, Cambridge University Press, number 9780521666633, October. Full references (including those not matched with items on IDEAS)