When adding a fuel efficient car increases an automaker's CAFE penalty

Steven Tenn and John M. Yun
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Steven Tenn: Federal Trade Commission, Washington, DC, USA, Postal: Federal Trade Commission, Washington, DC, USA
John M. Yun: Federal Trade Commission, Washington, DC, USA, Postal: Federal Trade Commission, Washington, DC, USA

Managerial and Decision Economics, 2005, vol. 26, issue 1, pages 51-54

Abstract: We derive the conditions that cause an automaker's Corporate Average Fuel Economy (CAFE) fine to increase when it sells an additional, fuel efficient car. Raising the CAFE standards would broaden the range of fuel economies that produce this effect. Copyright © 2005 John Wiley & Sons, Ltd.

Date: 2005
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