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Offsetting Behavior Effects of the Corporate Average Fuel Economy Standards

Author

Listed:
  • John M. Yun

    (Federal Trade Commission, 601 Pennsylvania Ave. NW, 5th Floor, Washington, DC 20580.)

Abstract

Research has concluded that regulatory attempts to improve fuel economy, such as the Corporate Average Fuel Economy (CAFE) Standards, lower the average weight of an automobile. Ceteris paribus , this reduction in weight is detrimental to the overall level of vehicle safety. However, this study attempts to explicitly measure possible behavioral responses on the part of drivers that could offset some of the loss in safety. The results indicate that CAFE, although increasing the vulnerability rate by approximately 20%, has reduced the accident rate by 26%. The net effect on the fatality rate is a decrease of approximately 6%. Copyright 2002, Oxford University Press.

Suggested Citation

  • John M. Yun, 2002. "Offsetting Behavior Effects of the Corporate Average Fuel Economy Standards," Economic Inquiry, Western Economic Association International, vol. 40(2), pages 260-270, April.
    • Handle: RePEc:oup:ecinqu:v:40:y:2002:i:2:p:260-270
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    Citations

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    Cited by:

    1. Turrentine, Thomas S. & Kurani, Kenneth S., 2007. "Car buyers and fuel economy?," Energy Policy, Elsevier, vol. 35(2), pages 1213-1223, February.
    2. Turrentine, Tom & Kurani, Kenneth S, 2007. "Car buyers and fuel economy?," Institute of Transportation Studies, Working Paper Series qt56x845v4, Institute of Transportation Studies, UC Davis.
    3. Berlemann, Michael & Matthes, Andreas, 2014. "Positive externalities from active car safety systems," Journal of Policy Modeling, Elsevier, vol. 36(2), pages 313-329.
    4. Brozovic, Nicholas & Ando, Amy Whritenour, 2009. "Defensive purchasing, the safety (dis)advantage of light trucks, and motor-vehicle policy effectiveness," Transportation Research Part B: Methodological, Elsevier, vol. 43(5), pages 477-493, June.
    5. Shiau, Ching-Shin Norman & Michalek, Jeremy J. & Hendrickson, Chris T., 2009. "A structural analysis of vehicle design responses to Corporate Average Fuel Economy policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(9-10), pages 814-828, November.
    6. Clifford Winston & Vikram Maheshri & Fred Mannering, 2006. "An exploration of the offset hypothesis using disaggregate data: The case of airbags and antilock brakes," Journal of Risk and Uncertainty, Springer, vol. 32(2), pages 83-99, March.

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