PROSPECTS FOR IMPROVING THE FUEL ECONOMY OF LIGHT-DUTY VEHICLES

U.S. efforts to reduce light-duty vehicle fuel use have focused primarily on policies aimed directly at vehicle fuel economy not use, e.g. fuel economy standards and research on efficiency technology. Although economists have traditionally favored fuel taxes as a more efficient policy tool, the U.S. political system seems allergic to higher taxes. This paper explores the potential effectiveness of higher gasoline taxes vs. more stringent fuel economy standards, focusing particularly on the fuel price sensitivity of gasoline demand and the technical prospects for improved fuel economy. The authors conclude that the evidence supports a long-run price elasticity of about -0.4, i.e. gasoline demand is relatively insensitive to the fuel price, despite early econometric analyses projecting high fuel price elasticities of demand. They also conclude that there are substantial technical prospects for improving fuel economy, although the current marketplace has little interest in such prospects.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/03014215
• Corporate Authors:

  Butterworth Scientific Limited

  Journals Division, P.O. Box 63, Westbury House, Bury
  Guildford, Surrey  England  GU2 5BH
• Authors:
  • Plotkin, S E
  • Greene, D
• Publication Date: 1997

Language

• English

Media Info

• Features: References;
• Pagination: p. 1179-88
• Serial:
  • Energy Policy
  • Volume: 25
  • Issue Number: 14 15
  • Publisher: Butterworth Scientific Limited
  • ISSN: 0301-4215

Subject/Index Terms

• TRT Terms: Demand; Elasticity (Economics); Fuel conservation; Fuel consumption; Fuel taxes; Gasoline; Light vehicles; Markets; Prices; Standards
• Subject Areas: Economics; Energy; Highways; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 00811212
• Record Type: Publication
• Files: TRIS
• Created Date: May 25 2001 12:00AM