Corporate average fuel economy standards and the market for new vehicles

Thomas Klier and Joshua Linn

No WP-2011-01, Working Paper Series from Federal Reserve Bank of Chicago

Abstract: This paper presents an overview of the economics literature on the effect of Corporate Average Fuel Economy (CAFE) standards on the new vehicle market. Since 1978, CAFE has imposed fuel economy standards for cars and light trucks sold in the U.S. market. This paper reviews the history of the standards, followed by a discussion of the major upcoming changes in implementation and stringency. It describes strategies that firms can use to meet the standards and reviews the CAFE literature as it applies to the new vehicle market. The paper concludes by highlighting areas for future research in light of the upcoming changes to CAFE.

Keywords: Fuel; Energy consumption; Automobiles - Prices (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-ene and nep-reg
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Corporate Average Fuel Economy Standards and the Market for New Vehicles (2011)
Working Paper: Corporate Average Fuel Economy Standards and the Market for New Vehicles (2010)
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