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Gasoline savings from clean vehicle adoption

Tamara Sheldon and Rubal Dua

Energy Policy, 2018, vol. 120, issue C, 418-424

Abstract: Conventional counterfactuals used in literature may underestimate fuel savings from clean vehicle adoption, thus overestimating the costs of securing associated environmental benefits. Using a large-scale nationally representative sample of U.S. new car buyers, we propose a choice model-based counterfactual approach to predict what consumers would purchase if clean vehicles were unavailable. We find that gasoline consumption under a no clean vehicle scenario increases by 1.7%, compared with 1.1% based on a conventional counterfactual. The conventional counterfactual overestimates the cost of gasoline savings from clean vehicle adoption incentives by $1.16 (27%) per gallon compared with the choice model-based counterfactual.

Keywords: Q48; R40; Fuel efficiency; Clean vehicles; Air pollution; Transportation policy (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:120:y:2018:i:c:p:418-424

DOI: 10.1016/j.enpol.2018.05.057

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