Gillingham, Kenneth; Houde, Sébastien; van Benthem, … - 2019
costs and 15-38 cents in the vehicle purchase price when discounting at 4%. This myopia persists under a wide range of … costs. We provide the first evidence on consumer valuation of fuel economy from a natural experiment. We examine the short …-run equilibrium effects of an exogenous restatement of fuel-economy ratings that affected 1.6 million vehicles. Using the implied …