New Passenger Vehicle Demand Elasticities: Estimates and Policy Implications
In this working paper, the authors estimate a set of demand elasticities for new passenger vehicles in order that can inform policy analysis and fuel economy regulations.
We apply a simple methodology to estimate own- and cross-price elasticities of new passenger vehicle demand based on household-level survey data. Our methodology combines own-price elasticity estimates with diversion fractions constructed from second-choice data. We obtain a set of elasticities that are relevant for policy analysis, including an aggregate market elasticity, a matrix of car and light truck elasticities, and a matrix of gasoline and electric vehicle (EV) elasticities. Our results have implications for evaluating incidence of fuel economy and greenhouse gas standards for passenger vehicles and policies for increasing EV adoption.
In Focus — Nov 21, 2023
In Focus: Sustainable Aviation
This video shares insights about technologies and alternative fuels that can help reduce emissions from aviation, with RFF Fellow Nafisa Lohawala.
Policy Leadership Series — Nov 29, 2023
Electrifying Transportation: A Policy Leadership Series Event with Cathy Zoi
A conversation with former EVgo CEO and Director Cathy Zoi on the ways to electrify the transportation sector.
Media Highlight — Oct 3, 2023
PBS: “Electric Cars—Pros and Cons”
Fellow Beia Spiller, who directs RFF's Transportation Program, discusses the benefits and costs of widespread EV adoption in two episodes of the series “Energy Switch.”
Report — Sep 13, 2023
Prioritizing Justice in New York State Climate Policy: Cleaner Air for Disadvantaged Communities?
This report, produced in partnership with the New York City Environmental Justice Alliance, examines air quality improvements in two options for implementing New York State's Climate Leadership and Community Protection Act.