Automobile Fuel Economy Standards: Impacts, Efficiency, and Alternatives

Resources for the Future DP 10-45, 2010

32 Pages Posted: 15 Oct 2010

See all articles by Soren Anderson

Soren Anderson

Michigan State University - Department of Economics; Michigan State University - Department of Agricultural Economics; National Bureau of Economic Research

Ian W. H. Parry

Resources for the Future

James Sallee

University of Michigan at Ann Arbor

Carolyn Fischer

Resources for the Future

Multiple version iconThere are 2 versions of this paper

Date Written: October 13, 2010

Abstract

This paper discusses fuel economy regulations in the United States and other countries. We first describe how these programs affect fuel use and other dimensions of the vehicle fleet. We then review different methodologies for assessing the costs of fuel economy regulations and discuss the policy implications of the results. We also compare the welfare effects of fuel economy standards with those of fuel taxes and assess whether these two policies complement each other. Finally, we review arguments in favor of a "feebate" system, which imposes fees on inefficient vehicles and provides rebates for efficient vehicles.

Keywords: fuel economy regulations, costs, welfare effects, climate change, feebates

JEL Classification: Q48, Q58, H21, R48

Suggested Citation

Anderson, Soren T. and Parry, Ian W. H. and Sallee, James and Fischer, Carolyn, Automobile Fuel Economy Standards: Impacts, Efficiency, and Alternatives (October 13, 2010). Resources for the Future DP 10-45, 2010. Available at SSRN: https://ssrn.com/abstract=1691708 or http://dx.doi.org/10.2139/ssrn.1691708

Soren T. Anderson

Michigan State University - Department of Economics ( email )

East Lansing, MI 48824
United States

Michigan State University - Department of Agricultural Economics ( email )

East Lansing, MI 48824
United States

National Bureau of Economic Research ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Ian W. H. Parry (Contact Author)

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States
202-328-5151 (Phone)
202-939-3460 (Fax)

HOME PAGE: http://www.rff.org/~parry

James Sallee

University of Michigan at Ann Arbor ( email )

500 S. State Street
Ann Arbor, MI 48109
United States

Carolyn Fischer

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States
202-328-5012 (Phone)
202-939-3460 (Fax)

HOME PAGE: http://www.rff.org/~fischer

Register to save articles to
your library

Register

Paper statistics

Downloads
66
Abstract Views
820
rank
281,827
PlumX Metrics