There is an intense debate over whether fuel economy standards or fuel taxation is the more efficient policy instrument to raise fuel economy and reduce CO2 emissions of cars. The aim of this paper is to analyze the impact of standards and fuel prices on new car fuel economy with the aid of...

Pollution from transport is being cut substantially through exhaust emissions regulations and vehicle manufacturers’ investments in cleaner technologies. The benefits of these improvements, however, are delayed as car fleet renewal takes a decade on average in Europe. Car scrappage schemes can...