This paper investigates household behaviour with regard to vehicle fuel efficiency. We propose to approach the Willingness to Pay (WTP) for better fuel efficiency through the Hicksian compensating variation in income. Specifically, we distinguish the Willingness to Pay or to Accept (WTA) buying...

The paper constructs a dynamic general equilibrium model to study the endogenous determination of gasoline use, driving and vehicle fuel efficiency. Before vehicles are produced, their fuel efficiency can be chosen optimally. Once produced, their fuel efficiency cannot be changed. The model...

This paper examines the case for internationally coordinated indirect taxes on aviation (as a source of general revenue-not (necessarily) as a source of development finance). The case for such taxes is strong: the tax burden on international aviation is currently limited, yet it contributes...

The relationship between gasoline prices and the demand for vehicle fuel efficiency is important for environmental policy but poorly understood in the academic literature. We provide empirical evidence that automobile manufacturers price as if consumers respond to gasoline prices. We derive a...

This article offers a simple, easy-to-use tool, CECANT, that allows policy analysts to calculate the economy-wide or sectoral energy use effects of new or prospective energy efficiency technologies. Such effects are in general intricate and subtle. Unlike more complex general equilibrium models,...

This issue brief compares projected savings from drilling in presently restricted offshore zones and savings if the nation had continued adjusting fuel efficiency standards at 1980-1985 rates. The issue brief projects savings through 2027, the year in which offshore drilling would reach peak...

Cars manufactured in the United States have become increasingly fuel efficient in the past two decades, and many people attribute that to rising gasoline prices. From 1975 to 1985, following the 1973 oil embargo, the fuel efficiency of new cars increased by more than 60 percent. What's...

There is increasing pressure to reduce global CO2 emissions, with aviation targeted as an industry with high future expected growth and limited potential for reduced emissions. In Europe, air transport is likely to be included in the Emissions Trading Scheme from 2012, allowing open trading with...

Laboratory studies have provided evidences regarding the impacts of engine technology on vehicle emissions; however, questions remain regarding the relations between alternative vehicle fuels and on-road vehicle emissions as well as energy demands from upstream fuel production processes to...