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Do Market Shares or Technology Explain Rising New Vehicle Fuel Economy?

Author

Listed:
  • Khanna, Shefali

    () (Resources for the Future)

  • Linn, Joshua

    () (Resources for the Future)

Abstract

By decreasing gasoline consumption, greater fuel economy could significantly reduce environmental and energy security concerns. In this paper, we show that since the year 2000, technology and market shares have contributed roughly equally to rising new vehicle fuel economy in the United States. We discuss the implications of these patterns for the safety and welfare effects of fuel economy standards.

Suggested Citation

  • Khanna, Shefali & Linn, Joshua, 2013. "Do Market Shares or Technology Explain Rising New Vehicle Fuel Economy?," Discussion Papers dp-13-29, Resources For the Future.
  • Handle: RePEc:rff:dpaper:dp-13-29
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    File URL: http://www.rff.org/RFF/documents/RFF-DP-13-29.pdf
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    References listed on IDEAS

    as
    1. 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 220-256, February.
    2. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    corporate average fuel economy standards; passenger vehicles; fuel savings; vehicle safety; greenhouse gas emissions rate standards;

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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