 How do US passenger vehicle fuel economy standards affect new vehicle purchases?Xiaoya Dou and Joshua Linn Journal of Environmental Economics and Management, 2020, vol. 102, issue C Abstract: Like many energy efficiency standards, passenger vehicle fuel economy and greenhouse gas standards apply to new but not used products. In theory, such vintage differentiated regulation could reduce demand for new vehicles, which would reduce the social welfare gains of tighter standards. Using household data from 1996 to 2016, which includes periods of stable standards and periods of tightening standards, we provide the first direct evidence of the effects of standards on new vehicle purchases. Tighter standards induce statistically and economically significant reductions in new vehicle purchases, which raises welfare costs of tighter standards modestly. Keywords: Passenger vehicles; Fuel tax; Fuel economy standard; Greenhouse gas emissions standard; Consumer demand; Vintage differentiated regulation; Used vehicles (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:102:y:2020:i:c:s0095069620300553 DOI: 10.1016/j.jeem.2020.102332 Access Statistics for this article Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates More articles in Journal of Environmental Economics and Management from Elsevier |
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