How Regulations Can Succeed Where Taxes Do Not: An Examination of Automobile Fuel Efficiency

Amihai Glazer and Charles Lave

Public Economics from EconWPA

Abstract: In 1975 the United States government required automobile manufacturers to increase the corporate average fuel economy of their products. Why were such CAFE regulations more effective than increases in the price of gasoline in improving fuel economy? Our answer focuses on myopia by consumers, myopia by producers, and the rational incentive to delay irreversible investments.

JEL-codes: D6 D7 H (search for similar items in EconPapers)
Date: 1994-06-08
Note: LaTex
View list of references View citations in EconPapers

Downloads: (external link)
http://129.3.20.41/eps/pe/papers/9406/9406002.pdf (application/pdf)
http://129.3.20.41/eps/pe/papers/9406/9406002.tex (application/x-tex)
http://129.3.20.41/eps/pe/papers/9406/9406002.ps.gz (application/postscript)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwppe:9406002

Access Statistics for this paper

More papers in Public Economics from EconWPA
Series data maintained by EconWPA ().