IDEAS home Printed from
   My bibliography  Save this paper

Cost-efficiency methodology for the selection of new car emission standards in Europe


  • Zeger Degraeve

    (London Business School)

  • Stef Proost

    () (K.U.Leuven, C.E.S., Energy, Transport and Environment)

  • Gunther Wuyts

    (K.U.Leuven, C.E.S., Energy, Transport and Environment)


In the Auto-Oil Programme, the European Commission looks for emission limits for cars such that the urban air quality targets are reached at minimum cost. This optimisation problem was solved by Degraeve et al. (1998). In this paper we deal with two methodological problems in this cost efficiency approach. We study first what is known as the overachievement problem in cost-effectiveness analysis. In a pure cost-efficiency approach, there is a tendency to understate the merits of federal regulatory measures: because these measures are uniform they will always do more than required in some regions. We prove this and show how this problem can be solved using minimum information on the benefits of environmental improvements. The second problem we study is the implementation problem of local measures. From a European wide perspective, it may be cost-efficient that some regions take local measures but this is not necessary in the interest of these regions when there is transfrontier pollution. When this behavioural constraint is taken into account, the cost efficient bundle will change. We show how these two considerations affect the selection of optimal emission standards for cars in Europe.

Suggested Citation

  • Zeger Degraeve & Stef Proost & Gunther Wuyts, 2001. "Cost-efficiency methodology for the selection of new car emission standards in Europe," Energy, Transport and Environment Working Papers Series ete0125, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
  • Handle: RePEc:ete:etewps:ete0125

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ete:etewps:ete0125. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (library EBIB). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.