Fuel Efficiency Standards Should Not Be Raised

Nakaya, Andrea C. (Ed.), Oil, Farmington Hills, Michigan: Greenhaven Press, 2006

3 Pages Posted: 7 Mar 2014

See all articles by David N. Laband

David N. Laband

Georgia Institute of Technology

Christopher Westley

Florida Gulf Coast University

Date Written: July 1, 2004

Abstract

The authors argue that efforts to promote fuel efficiency by raising Corporate Average Fuel Economy (CAFE) standards fail because of perverse incentives created by them to increase driving when the relative cost of fuel falls. They argue further that raising CAFE standards may harm society by leading to higher vehicle costs and the manufacture of lighter, less-safe vehicles.

Keywords: Fuel Economy, Energy Economics, Applied Microeconomics

JEL Classification: Q48

Suggested Citation

Laband, David N. and Westley, Christopher, Fuel Efficiency Standards Should Not Be Raised (July 1, 2004). Nakaya, Andrea C. (Ed.), Oil, Farmington Hills, Michigan: Greenhaven Press, 2006. Available at SSRN: https://ssrn.com/abstract=2405158

David N. Laband

Georgia Institute of Technology ( email )

Christopher Westley (Contact Author)

Florida Gulf Coast University ( email )

Ft. Myers, FL 33965-6565
United States

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