Evaluating US Fuel Economy Standards in a Model with Producer and Household Heterogeneity

• 成果类型: Article
• 署名作者: Jacobsen, Mark R.
• 署名单位: University of California System; University of California San Diego
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.5.2.148
• 发表日期: 2013
• 页码: 148-187
• 关键词: Efficiency; impacts; cost

摘要

This paper employs an empirically estimated model to study the equilibrium effects of an increase in the US corporate average fuel economy (CAFE) standards. I identify and model heterogeneity across firms and find that the profit impacts of CAFE fall almost entirely on domestic producers. The welfare analyses consider the simultaneous household decision of vehicle and miles traveled, allowing direct comparison with a gasoline tax. Finally, I consider dynamic impacts in the used car market. I find these comprise nearly half the gross welfare cost of CAFE and fall disproportionately on low-income households. Contrary to previous results, the overall welfare costs are regressive.