Skip Ribbon Commands
Skip to main content
Home | Support RFF | Join E-mail List | Contact
RFF Logo
Skip navigation links
RESEARCH TOPICS
CENTERS
PUBLICATIONS
NEWS
EVENTS
RESEARCHERS
ABOUT RFF
 

 

 
Join E-mail List
Please provide your e-mail address to receive periodic newsletters and invitations to public events
 
 
The Economics of Fuel Economy Standards
Paul R. Portney, Ian W.H. Parry, Howard K. Gruenspecht, Winston Harrington
RFF Discussion Paper 03-44 | November 2003
Related journal article
 
RESEARCH TOPICS:
Abstract
This paper discusses several rationales for the Corporate Average Fuel Economy(CAFE) program, including reduced oil dependence, reduced greenhouse gas emissions, and thepossibility that fuel saving benefits from higher standards might exceed added vehicle costs. Wethen summarize what can be said about the welfare effects of tightening standards, accountingfor prior fuel taxes, and perverse effects on congestion and traffic accidents through the impactof improved fuel economy on the incentive to drive. Implications of CAFE on local airpollution, and the controversy over CAFE, vehicle weight, and road safety, are also discussed.Finally, we describe ways in which the existing CAFE program could be substantially improvedand identify a variety of alternative, and much superior, policy approaches.
RELATED SUBTOPICS
Fuel Taxes
RFF Home | RFF Press: An Imprint of Routledge Terms of Use | Privacy Policy | Copyright Notice
1616 P St. NW, Washington, DC 20036 ยท 202.328.5000 Feedback | Contact Us