Fuel prices and new vehicle fuel economy—Comparing the United States and Western Europe

Thomas Klier and Joshua Linn

Journal of Environmental Economics and Management, 2013, vol. 66, issue 2, 280-300

Abstract: Several recent papers have documented an effect of fuel prices on new vehicle fuel economy in the United States. This paper estimates the effect of fuel prices on average new vehicle fuel economy for the eight largest European markets. The analysis spans the years 2002–2007 and uses detailed vehicle registration and specification data to control for policies, consumer preferences, and other potentially confounding factors. We find fuel prices to have a statistically significant effect on average new vehicle fuel economy in Europe. The effect estimated for Europe is much smaller than comparable estimates for the United States.

Keywords: Passenger vehicle markets; Fuel taxes; Fuel prices; Fuel economy (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (35)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:66:y:2013:i:2:p:280-300

DOI: 10.1016/j.jeem.2013.03.003

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