Using data on all vehicles registered in Canadian provinces from 2000-2010, we estimate the elasticity of the fuel economy of the new vehicle stock with respect to gasoline price. We demonstrate that a 10% increase in gasoline price causes a 0.8% improvement in the fuel economy of new vehicles....

New vehicle feebate programs encourage improved fleet-wide vehicle fuel efficiency; yet analyses of these policies have been limited to ad hoc proposals. In this paper, we exploit an extensive, multi-year dataset which includes more than 16 million observations to evaluate the welfare...