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," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(3), pages 201-222, March.
    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. 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.
    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. Ajanovic, Amela & Schipper, Lee & Haas, Reinhard, 2012. "The impact of more efficient but larger new passenger cars on energy consumption in EU-15 countries," Energy, Elsevier, vol. 48(1), pages 346-355.
    2. Grubb, Michael & Chapuis, Thierry & Duong, Minh Ha, 1995. "The economics of changing course : Implications of adaptability and inertia for optimal climate policy," Energy Policy, Elsevier, vol. 23(4-5), pages 417-431.
    3. Clément Carbonnier, 2005. "Is Tax Shifting Asymmetric? Evidence from French VAT reforms, 1995-2000," Working Papers halshs-00590719, HAL.
    4. Figus, Gioele & Swales, J.Kim & Turner, Karen, 2018. "Can Private Vehicle-augmenting Technical Progress Reduce Household and Total Fuel Use?," Ecological Economics, Elsevier, vol. 146(C), pages 136-147.
    5. Sentenac-Chemin, Elodie, 2012. "Is the price effect on fuel consumption symmetric? Some evidence from an empirical study," Energy Policy, Elsevier, vol. 41(C), pages 59-65.
    6. Lowe, Robert, 2003. "A theoretical analysis of price elasticity of energy demand in multi-stage energy conversion systems," Energy Policy, Elsevier, vol. 31(15), pages 1699-1704, December.
    7. Selien De Schryder & Gert Peersman, 2016. "The U.S. Dollar Exchange Rate and the Demand for Oil," The Energy Journal, , vol. 37(1), pages 90-114, January.
    8. Elodie Sentenac-Chemin, 2009. "Is the price effect on fuel consumption symmetric ? Some evidence from an empirical study," Working Papers hal-02469516, HAL.
    9. Fedoseeva, Svetlana & Zeidan, Rodrigo, 2018. "How (a)symmetric is the response of import demand to changes in its determinants? Evidence from European energy imports," Energy Economics, Elsevier, vol. 69(C), pages 379-394.
    10. Huntington, Hillard G. & Barrios, James J. & Arora, Vipin, 2019. "Review of key international demand elasticities for major industrializing economies," Energy Policy, Elsevier, vol. 133(C).
    11. K. Conrad, 2000. "Energy Tax and Competition in Energy Efficiency: The Case of Consumer Durables," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 15(2), pages 159-177, February.
    12. Dermot Gately & Hillard G. Huntington, 2002. "The Asymmetric Effects of Changes in Price and Income on Energy and Oil Demand," The Energy Journal, , vol. 23(1), pages 19-55, January.
    13. Eom, Jiyong & Schipper, Lee, 2010. "Trends in passenger transport energy use in South Korea," Energy Policy, Elsevier, vol. 38(7), pages 3598-3607, July.
    14. Goerlich, Roland & Wirl, Franz, 2012. "Interdependencies between transport fuel demand, efficiency and quality: An application to Austria," Energy Policy, Elsevier, vol. 41(C), pages 47-58.
    15. Wohlgemuth, Norbert, 1997. "World transport energy demand modelling : Methodology and elasticities," Energy Policy, Elsevier, vol. 25(14-15), pages 1109-1119, December.
    16. Orasch, Wolfgang & Wirl, Franz, 1997. "Technological efficiency and the demand for energy (road transport)," Energy Policy, Elsevier, vol. 25(14-15), pages 1129-1136, December.
    17. Hunt, Lester C. & Ryan, David L., 2015. "Economic modelling of energy services: Rectifying misspecified energy demand functions," Energy Economics, Elsevier, vol. 50(C), pages 273-285.
    18. Sa'ad, Suleiman, 2011. "Underlying energy demand trends in South Korean and Indonesian aggregate whole economy and residential sectors," Energy Policy, Elsevier, vol. 39(1), pages 40-46, January.
    19. Huntington, Hillard G., 2010. "Short- and long-run adjustments in U.S. petroleum consumption," Energy Economics, Elsevier, vol. 32(1), pages 63-72, January.
    20. Dargay, Joyce M. & Gately, Dermot, 2010. "World oil demand's shift toward faster growing and less price-responsive products and regions," Energy Policy, Elsevier, vol. 38(10), pages 6261-6277, October.

    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.