The Rebound Effect for Passenger Vehicles
Increasingly stringent fuel economy standards will reduce per-mile driving costs and may raise vehicle miles traveled, which is referred to as the rebound effect. All previous estimates impose at least one of three behavioral assumptions: (a) fuel economy is uncorrelated with other vehicle attributes; (b) fuel economy is uncorrelated with attributes of other vehicles owned by the household; and (c) the effect of gasoline prices on vehicle miles traveled is inversely proportional to the effect of fuel economy. Relaxing these assumptions yields a large and robust rebound effect; a one percent fuel economy increase raises driving 0.2 to 0.4 percent.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frondel, Manuel & Ritter, Nolan & Vance, Colin, 2012.
"Heterogeneity in the rebound effect: Further evidence for Germany,"
Elsevier, vol. 34(2), pages 461-467.
- Li, Shanjun & Linn, joshua & Muehlegger, Erich J., 2012.
"Gasoline Taxes and Consumer Behavior,"
8506866, Harvard Kennedy School of Government.
- Li, Shanjun & Linn, Joshua & Muehlegger, Erich, 2012. "Gasoline Taxes and Consumer Behavior," Working Paper Series rwp12-006, Harvard University, John F. Kennedy School of Government.
- Shanjun Li & Joshua Linn & Erich Muehlegger, 2012. "Gasoline Taxes and Consumer Behavior," NBER Working Papers 17891, National Bureau of Economic Research, Inc.
- Greene, David L., 2012. "Rebound 2007: Analysis of U.S. light-duty vehicle travel statistics," Energy Policy, Elsevier, vol. 41(C), pages 14-28.
- Ye Feng & Don Fullerton & Li Gan, 2005.
"Vehicle Choices, Miles Driven, and Pollution Policies,"
NBER Working Papers
11553, National Bureau of Economic Research, Inc.
- Ye Feng & Don Fullerton & Li Gan, 2013. "Vehicle choices, miles driven, and pollution policies," Journal of Regulatory Economics, Springer, vol. 44(1), pages 4-29, August.
- Meghan R. Busse & Christopher R. Knittel & Florian Zettelmeyer, 2013. "Are Consumers Myopic? Evidence from New and Used Car Purchases," American Economic Review, American Economic Association, vol. 103(1), pages 220-56, February.
- Soren T. Anderson & Ryan Kellogg & James M. Sallee, 2011.
"What Do Consumers Believe About Future Gasoline Prices?,"
NBER Working Papers
16974, National Bureau of Economic Research, Inc.
- Anderson, Soren T. & Kellogg, Ryan & Sallee, James M., 2013. "What do consumers believe about future gasoline prices?," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 383-403.
- Thomas H. Klier & Joshua Linn, 2008.
"New vehicle characteristics and the cost of the corporate average fuel economy standard,"
Working Paper Series
WP-08-13, Federal Reserve Bank of Chicago.
- Thomas Klier & Joshua Linn, 2012. "New‐vehicle characteristics and the cost of the Corporate Average Fuel Economy standard," RAND Journal of Economics, RAND Corporation, vol. 43(1), pages 186-213, 03.
- Kenneth A. Small & Kurt Van Dender, 2006.
"Fuel Efficiency and Motor Vehicle Travel: The Declining Rebound Effect,"
050603, University of California-Irvine, Department of Economics.
- Kenneth A. Small & Kurt Van Dender, 2007. "Fuel Efficiency and Motor Vehicle Travel: The Declining Rebound Effect," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 25-52.
- Christopher R. Knittel & Ryan Sandler, 2013. "The Welfare Impact of Indirect Pigouvian Taxation: Evidence from Transportation," NBER Working Papers 18849, National Bureau of Economic Research, Inc.
- Mark R. Jacobsen, 2013. "Evaluating US Fuel Economy Standards in a Model with Producer and Household Heterogeneity," American Economic Journal: Economic Policy, American Economic Association, vol. 5(2), pages 148-87, May.
- Hunt Allcott & Nathan Wozny, 2012. "Gasoline Prices, Fuel Economy, and the Energy Paradox," NBER Working Papers 18583, National Bureau of Economic Research, Inc.
- Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
- Thomas H. Klier & Joshua Linn, 2009. "The price of gasoline and the demand for fuel economy: evidence from monthly new vehicles sales data," Working Paper Series WP-09-15, Federal Reserve Bank of Chicago.
- West, Sarah E., 2004. "Distributional effects of alternative vehicle pollution control policies," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 735-757, March.
When requesting a correction, please mention this item's handle: RePEc:rff:dpaper:dp-13-19. 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: (Webmaster)
If references are entirely missing, you can add them using this form.