How Do US Passenger Vehicle Fuel Economy Standards Affect Purchases of New and Used Vehicles?

Standards regulating greenhouse gas emissions and fuel economy are applied only to new vehicles. Such regulation, based on vehicle age, could raise the demand for used vehicles, thereby reducing the social welfare gains of stricter vehicle standards. The authors draw upon household data from 1996 through 2016, that includes periods of stable and tightening standards, to provide for the first time direct evidence of the effects of standards on consumer choices of new and used vehicles. Stricter standards induce shifts in purchases from new vehicles to used vehicles, raising the standards’ costs in public welfare.

• Record URL:
  • http://www.rff.org/files/document/file/RFF%20Rpt%20Linn%20Dou%20Fuel%20Economy%20New%20Cars.pdf
• 
• Corporate Authors:

  Resources for the Future

  Washington, DC  United States 
• Authors:
  • Linn, Joshua
  • Dou, Xiaoya
• Publication Date: 2018-8

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: 37p

Subject/Index Terms

• TRT Terms: Consumer preferences; Data analysis; Fuel consumption; Greenhouse gases; Passenger vehicles; Purchasing; Regulation; Standards; Used cars
• Geographic Terms: United States
• Subject Areas: Environment; Highways; Policy; Vehicles and Equipment;

Filing Info

• Accession Number: 01683042
• Record Type: Publication
• Files: TRIS
• Created Date: Oct 11 2018 11:28AM