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| Author: | Austin, D. Dinan, T. |
| Title: | Clearing the air: the costs and consequences of higher CAFE standards and increased gasoline taxes |
| Journal: | Journal of Environmental Economics and Management
2005 : NOV, VOL 50:3, p. 562-582 |
| Index terms: | climate credit trading ENERGY CONSERVATION fuel taxation |
| Language: | eng |
| Abstract: | Concerns about energy security and climate change have increased legislators' interest in reducing gasoline consumption by increasing corporate average fuel-economy (CAFE) standards. Using a simulation model and cost estimates for anticipated fuel-economy technologies, the authors estimate annual costs of reducing long-run gasoline consumption by 10% via a 3.8 miles per gallon increase in the standards, and the potential cost savings from allowing manufacturers to buy and sell fuel-economy credits. Maximum gasoline saving would be realized only after all existing vehicles were replaced, or 14 years in this model. |
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