Abatement Strategies and the Cost of Environmental Regulation: Emission Standards on the European Car Market
Mathias Reynaert
The Review of Economic Studies, 2021, vol. 88, issue 1, 454-488
Abstract:
This article studies the introduction of an EU-wide emission standard on the automobile market. Using panel data from 1998 to 2011, I find that firms decreased emission ratings by 14%. Firms use technology adoption and gaming of emission tests to decrease emissions, rather than shifting the sales mix or downsizing. I find that the standard missed its emission target, and from estimating a structural model, I find that the standard was not welfare improving. The political environment in the EU shaped the design and weak enforcement and resulted in firms’ choices for abatement by technology adoption and gaming.
Keywords: Environmental regulation; Compliance; Carbon emissions; Automobiles; Fuel economy; Q5; L5 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (18)
Downloads: (external link)
http://hdl.handle.net/10.1093/restud/rdaa058 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Abatement strategies and the cost of environmental regulation: emission standards on the European car market (2021) 
Working Paper: Abatement Strategies and the Cost of Environmental Regulation: Emission Standards on the European Car Market (2019) 
Working Paper: Abatement strategies and the cost of environmental regulation: Emission standards on the European car market (2014) 
Working Paper: Abatement Strategies and the Cost of Environmental Regulation: Emission Standards on the European Car Market (2014) 
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: https://EconPapers.repec.org/RePEc:oup:restud:v:88:y:2021:i:1:p:454-488.
Access Statistics for this article
The Review of Economic Studies is currently edited by Thomas Chaney, Xavier d’Haultfoeuille, Andrea Galeotti, Bård Harstad, Nir Jaimovich, Katrine Loken, Elias Papaioannou, Vincent Sterk and Noam Yuchtman
More articles in The Review of Economic Studies from Review of Economic Studies Ltd
Bibliographic data for series maintained by Oxford University Press ().