IDEAS home Printed from https://ideas.repec.org/p/ucy/cypeua/1-2007.html
   My bibliography  Save this paper

On the role of regulatory standards: Specification and some empirical evidence from motor vehicle fuel economy

Author

Listed:
  • Theodoros Zachariadis

Abstract

This paper proposes a simple model to evaluate the role of regulatory controls. It is formulated so as to enable drawing empirical conclusions on the basis of usual hypothesis tests. Three potential roles of standards are examined they can act as penalties for non-compliant firms, as norms to which all firms converge, and as controls with cumulative impact over time. I test this specification focusing on automobile fuel economy (CAFE) standards that have been imposed in the US since 1978, using annual data from each major auto manufacturer. Results show that CAFE rules, functioning mainly as penalties, have been an important determinant of car fuel consumption. The hypothesis that standards acted also as norms is rejected. Finally, the automobile industry as a whole became less constrained by regulations over the years because of stagnating CAFE standards since 1990 and progress in vehicle technology.

Suggested Citation

  • Theodoros Zachariadis, 2007. "On the role of regulatory standards: Specification and some empirical evidence from motor vehicle fuel economy," University of Cyprus Working Papers in Economics 1-2007, University of Cyprus Department of Economics.
    • Handle: RePEc:ucy:cypeua:1-2007
    as

    Download full text from publisher

    File URL: https://papers.econ.ucy.ac.cy/RePEc/papers/07-01.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Montero, Juan-Pablo, 2002. "Prices versus quantities with incomplete enforcement," Journal of Public Economics, Elsevier, vol. 85(3), pages 435-454, September.
    2. Choo, Sangho & Mokhtarian, Patricia L., 2004. "What type of vehicle do people drive? The role of attitude and lifestyle in influencing vehicle type choice," University of California Transportation Center, Working Papers qt7vg1057g, University of California Transportation Center.
    3. I.O. Walker & Franz Wirl, 1993. "Irreversible Price-Induced Efficiency Improvements: Theory and Empirical Application to Road Transportation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 183-205.
    4. Choo, Sangho & Mokhtarian, Patricia L., 2004. "What type of vehicle do people drive? The role of attitude and lifestyle in influencing vehicle type choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(3), pages 201-222, March.
    5. Sofronis Clerides & Theodoros Zachariadis, 2006. "Are standards Effective in Improving Automobile Fuel Economy?," University of Cyprus Working Papers in Economics 6-2006, University of Cyprus Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vredin Johansson, Maria & Heldt, Tobias & Johansson, Per, 2006. "The effects of attitudes and personality traits on mode choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(6), pages 507-525, July.
    2. Cristiano Codagnone & Giuseppe Alessandro Veltri & Francesco Bogliacino & Francisco Lupiáñez-Villanueva & George Gaskell & Andriy Ivchenko & Pietro Ortoleva & Francesco Mureddu, 2016. "Labels as nudges? An experimental study of car eco-labels," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(3), pages 403-432, December.
    3. Wårell, Linda & Ek, Kristina, 2024. "Male lone wolves and sociable females – Preferences for shared and AV transport services," Research in Transportation Economics, Elsevier, vol. 108(C).
    4. Michel Freyssenet & Bruno Jetin, 2019. "The deregulation of employment and finance: the Big Three in crisis," Working Papers halshs-02020051, HAL.
    5. Nayum, Alim & Klöckner, Christian A. & Prugsamatz, Sunita, 2013. "Influences of car type class and carbon dioxide emission levels on purchases of new cars: A retrospective analysis of car purchases in Norway," Transportation Research Part A: Policy and Practice, Elsevier, vol. 48(C), pages 96-108.
    6. repec:hum:wpaper:sfb649dp2007-065 is not listed on IDEAS
    7. Yazdanpanah, Mahdi & Hosseinlou, Mansour Hadji, 2016. "The influence of personality traits on airport public transport access mode choice: A hybrid latent class choice modeling approach," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 147-163.
    8. Cao, Xinyu, 2006. "The Causal Relationship between the Built Environment and Personal Travel Choice: Evidence from Northern California," University of California Transportation Center, Working Papers qt07q5p340, University of California Transportation Center.
    9. Qinliang Tan & Minnan Wang & Yanming Deng & Haiping Yang & Rao Rao & Xingping Zhang, 2014. "The Cultivation of Electric Vehicles Market in China: Dilemma and Solution," Sustainability, MDPI, vol. 6(8), pages 1-19, August.
    10. Martin, Elliott William, 2009. "New Vehicle Choice, Fuel Economy and Vehicle Incentives: An Analysis of Hybrid Tax Credits and the Gasoline Tax," University of California Transportation Center, Working Papers qt5gd206wv, University of California Transportation Center.
    11. Habibi, Shiva & Frejinger, Emma & Sundberg, Marcus, 2015. "An empirical study of aggregation of alternatives and its influence on prediction: case study of car type choice in Sweden," Working papers in Transport Economics 2015:3, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    12. Drebee, Hayder Abbas & Abdul Razak, Nor Azam & karim, mohd, 2014. "Is There an Overlapping Market between National Car Producers in Malaysia?," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 48(1), pages 75-85.
    13. Martin, Elliot William, 2009. "New Vehicle Choices, Fuel Economy and Vehicle Incentives: An Analysis of Hybrid Tax Credits and Gasoline Tax," University of California Transportation Center, Working Papers qt6sz198c2, University of California Transportation Center.
    14. Peters, Anja & Mueller, Michel G. & de Haan, Peter & Scholz, Roland W., 2008. "Feebates promoting energy-efficient cars: Design options to address more consumers and possible counteracting effects," Energy Policy, Elsevier, vol. 36(4), pages 1355-1365, April.
    15. Wang, Tingting & Chen, Cynthia, 2012. "Attitudes, mode switching behavior, and the built environment: A longitudinal study in the Puget Sound Region," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1594-1607.
    16. Li Wang & Feng Wei & Xin-an Zhang, 2019. "Why Does Energy-Saving Behavior Rise and Fall? A Study on Consumer Face Consciousness in the Chinese Context," Journal of Business Ethics, Springer, vol. 160(2), pages 499-513, December.
    17. Bhat, Chandra R. & Sen, Sudeshna & Eluru, Naveen, 2009. "The impact of demographics, built environment attributes, vehicle characteristics, and gasoline prices on household vehicle holdings and use," Transportation Research Part B: Methodological, Elsevier, vol. 43(1), pages 1-18, January.
    18. Chiou, Yu-Chiun & Wen, Chieh-Hua & Tsai, Shih-Hsun & Wang, Wei-Ying, 2009. "Integrated modeling of car/motorcycle ownership, type and usage for estimating energy consumption and emissions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(7), pages 665-684, August.
    19. Adjemian, Michael K. & Cynthia Lin, C.-Y. & Williams, Jeffrey, 2010. "Estimating spatial interdependence in automobile type choice with survey data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(9), pages 661-675, November.
    20. Hafner, Rebecca J. & Walker, Ian & Verplanken, Bas, 2017. "Image, not environmentalism: A qualitative exploration of factors influencing vehicle purchasing decisions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 89-105.
    21. Wei Wei & Ming Cao & Qianling Jiang & Sheng-Jung Ou & Hong Zou, 2020. "What Influences Chinese Consumers’ Adoption of Battery Electric Vehicles? A Preliminary Study Based on Factor Analysis," Energies, MDPI, vol. 13(5), pages 1-15, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucy:cypeua:1-2007. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.ucy.ac.cy/econ/?lang=en .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.