Press Release

CAFE TALK: New Blog Entry; New Discussion Paper

Feb 3, 2016

Today the second entry was posted by Resources for the Future (RFF) in a five-part blog series about the new CAFE standards and related energy issues: How Do Gas Prices Affect New Vehicle Sales?

Also today, a full discussion paper has posted upon which the second blog is based: Fuel Prices, New Vehicle Fuel Economy, and Implications for Attribute-Based Standards.

The new discussion paper notes that the relationship between fuel prices, consumer choices, and new vehicle fuel economy standards can change over time, and that this relationship affects the fuel use and greenhouse gas emissions reductions caused by fuel economy standards, as well as the anticipated effect of a gasoline tax or a carbon tax on new vehicle fuel economy. Evidence presented suggests that market shares respond less following a prolonged period of high fuel prices, implying slightly lower fuel savings than previously expected.

The new blog entry is authored by RFF Fellow Benjamin Leard and Senior Fellow Joshua Linn. The new discussion paper is authored by Leard, Linn, and RFF Senior Fellow Virginia McConnell.

Resources for the Future does not take institutional positions. Please attribute any findings to the authors or the research itself. For example, use "According to research from RFF …" rather than "According to RFF …".

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Resources for the Future (RFF) is an independent, nonpartisan organization based in Washington, DC, that conducts rigorous economic research and analysis to improve environmental and natural resource policy.