Corporate average fuel economy standards and the market for new vehicles
This paper presents an overview of the economics literature on the effect of Corporate Average Fuel Economy (CAFE) standards on the new vehicle market. Since 1978, CAFE has imposed fuel economy standards for cars and light trucks sold in the U.S. market. This paper reviews the history of the standards, followed by a discussion of the major upcoming changes in implementation and stringency. It describes strategies that firms can use to meet the standards and reviews the CAFE literature as it applies to the new vehicle market. The paper concludes by highlighting areas for future research in light of the upcoming changes to CAFE.
|Date of creation:||2011|
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- Thomas Klier & Joshua Linn, 2012.
"New‐vehicle characteristics and the cost of the Corporate Average Fuel Economy standard,"
RAND Journal of Economics,
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"Distributional and Efficiency Impacts of Increased US Gasoline Taxes,"
American Economic Review,
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"Traffic Safety and Vehicle Choice: Quantifying the Effects of the "Arms Race" on American Roads,"
dp-09-33, Resources For the Future.
- Shanjun Li, 2012. "Traffic safety and vehicle choice: quantifying the effects of the ‘arms race’ on American roads," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 27(1), pages 34-62, 01.
- Austin, David & Dinan, Terry, 2005. "Clearing the air: The costs and consequences of higher CAFE standards and increased gasoline taxes," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 562-582, November.
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