When Adding a Fuel Efficient Car Increases an Automaker's Cafe Penalty

10 Pages Posted: 18 Feb 2004

See all articles by Steven Tenn

Steven Tenn

Charles River Associates

John M. Yun

George Mason University - Antonin Scalia Law School, Faculty

Date Written: February 13, 2004

Abstract

We derive the conditions that cause an automaker's Corporate Average Fuel Economy (CAFE) fine to increase when it sells an additional, fuel efficient car. Raising the CAFE standards would broaden the range of fuel economies that produce this effect.

Keywords: Corporate average fuel economy, CAFE, fuel efficiency, automobile regulation

JEL Classification: K32, L51, L62

Suggested Citation

Tenn, Steven and Yun, John M., When Adding a Fuel Efficient Car Increases an Automaker's Cafe Penalty (February 13, 2004). Available at SSRN: https://ssrn.com/abstract=503242 or http://dx.doi.org/10.2139/ssrn.503242

Steven Tenn

Charles River Associates ( email )

1201 F Street, NW, Suite 700
Washington, DC 20004-1229
United States
202-662-3806 (Phone)
202-662-3910 (Fax)

John M. Yun (Contact Author)

George Mason University - Antonin Scalia Law School, Faculty ( email )

3301 Fairfax Drive
Arlington, VA 22201
United States

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