This article discusses cost effective methods for raising new car fuel economy to substantially higher levels than are common today. One of the primary barriers to much higher levels of fuel economy is that buyers of new cars reap very small financial rewards for buying more fuel efficient cars. To overcome this barrier, policies are needed that increase the price differential between cars of varying fuel economy, so that consumers have more incentive to buy fuel-efficient cars. Policies similar to the US Gas Guzzler Tax, or the proposed California Drive+ Program should be considered. In addition policy makers should consider reforming the automobile insurance system, so that insurance premiums are much more closely tied to distance driven. Although such reform will not be a strong incentive for purchasing more fuel-efficient cars, it should be effective in holding down the growth in automobile travel. (A) For the covering abstract see IRRD 864909.


  • English

Media Info

  • Features: References;
  • Pagination: p. 142-53

Subject/Index Terms

Filing Info

  • Accession Number: 00668001
  • Record Type: Publication
  • Source Agency: Transport Research Laboratory
  • ISBN: 92-64-03868-X
  • Files: ITRD
  • Created Date: Nov 2 1994 12:00AM