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Valuing Automobile Fuel Economy Over Time

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  • Espey, Molly
  • Walker, John E.

Abstract

Many aspects of automobile markets have changed significantly over the past decade, from vehicle weigh and power to technology for improvements in fuel economy, fundamentally altering tradeoffs among vehicle characteristics. Further, several significant laws were passed mandating increases in vehicle fuel economy. To understand the impact of such legislation, it is critical to know how consumers value fuel economy and other vehicle characteristics. While previous research has estimated the value of automobile fuel economy using hedonic analysis, this research adds to this literature by examining how this value changes over time, in particular in light of changing fuel prices over time, and highlights the significance of uncertainty in fuel economy measures in making such as estimation.

Suggested Citation

  • Espey, Molly & Walker, John E., 2013. "Valuing Automobile Fuel Economy Over Time," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150689, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150689
    DOI: 10.22004/ag.econ.150689
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    Resource /Energy Economics and Policy;

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