The firm response to regulation is seldom as controversial as in the context of fuel economy standards, a dominant … policy to reduce emissions from vehicles worldwide. It has long been argued that such standards lead to vehicle weight … the Corporate Average Fuel Economy (CAFE) standards on the vehicle weight distribution. We find that on net CAFE reduced …

The Chinese automobile market is the largest in the world with annual sales exceeding 20 million vehicles. The …

Despite widespread agreement that a carbon tax would be more efficient, many countries use fuel economy standards to ….S. fuel economy standards. The key insight from the model is that fuel economy standards impose a constraint on automakers …

Pigouvian taxes can fully correct for market failures due to externalities, but actual policies are commonly forced to …, which require a minimum of market information, that quantify the efficiency costs of such constraints on policy design. We …