INDUSTRIAL AND ECONOMIC IMPACTS OF IMPROVING AUTOMOBILE FUEL EFFICIENCY: AN INPUT/OUTPUT ANALYSIS

The federal government and private sector institutions have proposed that the manufacturers of automobiles modify their products to be more fuel efficient than the present fleet of cars. We have examined three alternatives which could improve automobile fuel efficiency. Two would involve reducing vehicle weight by replacing iron and steel with lighter weight aluminum or plastic. The third would change the mix of car sizes so that more small, light weight vehicles would be produced. Major emphasis in the paper is placed in describing potential automobile design changes for each of the alternatives and in analyzing several aspects of the interindustry and macroeconomic impacts. Industry output and employment changes are examined using the input/output model developed by Leoptief. Changes in output from the energy industries for each of the alternatives are analyzed and presented in dollar value rather than in units of energy. The input/output model is further used to examine impacts on GNP and national employment. To lay the proper goundwork for the analysis of impacts, an extensive discussion of the automobile industry and its importance in the U.S. economy is first presented. This discussion covers the industry and its suppliers, the industry's contribution to GNP, and material usage in automobiles.

  • Corporate Authors:

    Urban Institute

    2100 M Street, NW
    Washington, DC  USA  20037
  • Authors:
    • Cheslow, M D
  • Publication Date: 1976-4

Media Info

  • Features: Figures; References; Tables;
  • Pagination: 82 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00139858
  • Record Type: Publication
  • Source Agency: Highway Safety Research Institute
  • Report/Paper Numbers: Rept. No. 1216-3-2
  • Contract Numbers: GI-40615
  • Files: TRIS
  • Created Date: Oct 6 1976 12:00AM