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Localizing Environmental Regulation: The Case of Boutique Fuels

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  • Auffhammer, Maximilian

Abstract

The Clean Air Act has authorized an array of fuel regulations to reduce the precursors to ambient ozone pollution, among other pollutants. With the emergence of stringent fuel regulations for the most pollution-intensive cities, and the opportunity for states to adopt fuel content regulations, the U.S. gasoline market has evolved over the past three decades to address local pollution. We have evaluated the pollutant concentration, emissions, and price impacts of Federal RFG, RVP, California RFG, and other boutique fuel rules. We find that California RFG continues to deliver large improvements in air quality, while the benefits from RFG, RVP and boutique fuels are either small or statistically insignificant. We note, that ex post impacts of reformulated fuels are smaller than those predicted by ex ante analyses.

Suggested Citation

  • Auffhammer, Maximilian, 2023. "Localizing Environmental Regulation: The Case of Boutique Fuels," RFF Working Paper Series 23-20, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-23-20
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    File URL: https://www.rff.org/documents/3991/WP_23-20.pdf
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    References listed on IDEAS

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    1. Brown, Jennifer & Hastings, Justine & Mansur, Erin T. & Villas-Boas, Sofia B., 2008. "Reformulating competition Gasoline content regulation and wholesale gasoline prices," Journal of Environmental Economics and Management, Elsevier, vol. 55(1), pages 1-19, January.
    2. Marcus, Michelle, 2017. "On the road to recovery: Gasoline content regulations and child health," Journal of Health Economics, Elsevier, vol. 54(C), pages 98-123.
    3. Joseph E. Aldy & Maximilian Auffhammer & Maureen Cropper & Arthur Fraas & Richard Morgenstern, 2022. "Looking Back at 50 Years of the Clean Air Act," Journal of Economic Literature, American Economic Association, vol. 60(1), pages 179-232, March.
    4. Maximilian Auffhammer & Ryan Kellogg, 2011. "Clearing the Air? The Effects of Gasoline Content Regulation on Air Quality," American Economic Review, American Economic Association, vol. 101(6), pages 2687-2722, October.
    5. Anderson, Soren T. & Elzinga, Andrew, 2014. "A ban on one is a boon for the other: Strict gasoline content rules and implicit ethanol blending mandates," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 258-273.
    6. Chakravorty, Ujjayant & Nauges, Celine & Thomas, Alban, 2008. "Clean Air regulation and heterogeneity in US gasoline prices," Journal of Environmental Economics and Management, Elsevier, vol. 55(1), pages 106-122, January.
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