New research suggests that inattentive consumers significantly undervalue vehicle fuel cost savings. Policies designed to encourage greater consumer attention would likely increase the fuel economy of vehicles on the road and reduce GHG emissions.
Current US passenger vehicle fuel economy and greenhouse gas standards will roughly double fuel economy and cut emissions. Recently tightened standards have reduced fuel costs, but have had roughly zero net effect on consumer well-being.
Crediting provisions are key for reducing the costs of meeting regulations to reduce greenhouse gas emissions and fuel use from the light-duty vehicle fleet in the United States. We assess how well the credit markets are working and discuss options to improve efficiency.
Mar 14, 2017|
Ricardo A. Daziano, Mauricio Sarrias, Benjamin Leard|
Little analysis exists on the marketability of automated vehicles, although understanding consumer acceptance is critical to forecast adoption rates. Our analysis indicates that many individuals are willing to pay a significant amount for automation.
RFF experts comment on technology, consumer behavior, and zero emission vehicles in response to a draft report by the Environmental Protection Agency, Department of Transportation, and California Air Resources Board on the midterm review of US standards for greenhouse gases and fuel economy for passenger vehicles.
The new Corporate Average Fuel Economy and greenhouse gas emissions standards will radically change the fuel economy and emissions of US light-duty vehicles. What are the implications of lower gasoline prices for the benefits and costs of the standards?
After growing steadily for several decades, passenger vehicle miles traveled (VMT) in the United States unexpectedly leveled off in the 2000s. The underlying causes have major implications for future US oil consumption and greenhouse gas (GHG) emissions; but despite speculation in the popular media, the causes are unknown.
Aug 1, 2016|
Antonio Miguel Bento, Ravi Kanbur, Benjamin Leard|
Tailoring the baseline stringency of carbon offsets programs to address over-credited offsets and under-credited emissions reductions can help maintain the environmental integrity of such programs without sacrificing their substantial cost savings.
The recent drop in fuel prices could potentially reduce the average fuel economy of the vehicles consumers choose and undermine the fuel savings of US passenger vehicle fuel economy standards. However, this analysis suggests that the effects are modest.
An analysis of gasoline prices and US fuel economy standards reveals that price increases in the mid-2000s had a larger effect on vehicle market shares than recent decreases, but the latter have slightly reduced the mandated level of fuel economy.
Jan 15, 2016|
Clayton Munnings, Benjamin Leard, Antonio Miguel Bento |
An assessment of methodologies for crediting HFC-23 offset projects reveals that the supply of under-credited emissions reductions nearly equals that of over-credited offsets, implying that these projects maintain their environmental integrity on average.
Fuel economy regulations lower the cost of driving and can result in more miles traveled—what is known as the rebound effect. We estimate the magnitude of the rebound effect expected from new fuel economy regulations on medium- and heavy-duty trucks.
Under the new CAFE standards, US automakers can buy and sell emissions and fuel consumption credits for the first time. This added flexibility could lead to significant cost savings, but there are challenges to establishing a well-functioning market.