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Lessons learned from the case of the Californian ZEV Mandate: From a 'technology-forcing' to a 'market-driven' regulation


  • Philippe LARRUE (IFReDE-E3i GRES et INSEAD)


In this paper, we investigate how Californian regulatory authorities and the principal stakeholders that have contributed to the design of the ZEV Mandate have dealt with this complex task. In the first three sections we present, in three stages, the evolution of the ZEV Mandate from its inception to the most recent developments, trying to reconstruct the debate that surrounded this evolution. We present some conclusions in the final section. Given the constructivist approach we adopt in this paper, our contribution can only be modest. No definitive, consensual and ready-to-apply lessons can be drawn from such a controversial case. However, the Californian example, particularly because of its excesses in various regards, offers valuable inputs to draw a line around technology-forcing regulations, stressing the major pitfalls of the regulatory design process. Moreover, this case has proved especially powerful in raising lively debates among the various communities of stakeholders involved to a greater or lesser extent in alternative vehicles and more generally in environmental regulations. We claim that these types of debate are nothing less than the very first stage of the design and evaluation of an “effective” regulation.

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  • Philippe LARRUE (IFReDE-E3i GRES et INSEAD), 2003. "Lessons learned from the case of the Californian ZEV Mandate: From a 'technology-forcing' to a 'market-driven' regulation," Cahiers du GRES (2002-2009) 2003-07, Groupement de Recherches Economiques et Sociales.
  • Handle: RePEc:grs:wpegrs:2003-07

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    References listed on IDEAS

    1. Commons, John R., 1931. "Institutional Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 21, pages 648-657.
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    More about this item


    Regulation Environment Innovation Strategic behaviors Electric vehicle;

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources


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