Potential fuel savings and emissions reduction from fuel economy standards implementation for motor-vehicles

We estimate the sensitivity of scrap decisions to changes in used car values and show how this “scrap elasticity” produces emissions leakage under fuel efficiency standards, a process known as the Gruenspecht effect. We first estimate the effect of gasoline prices on used vehicle values and scrappage of vehicles with different fuel economies. We then estimate the scrap elasticity itself, which we find to be −0.7. When applied in a model of fuel economy standards, 13–16 percent of the expected fuel savings leak away through the used vehicle market. This effect rivals or exceeds the importance of the often-cited mileage rebound effect. (JEL H23, L62, L78, Q35, Q38, Q48, Q58)

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The Way towards an Energy Efficient Transportation by Implementation of Fuel Economy Standards: Fuel Savings and Emissions Mitigation

Sustainability ◽

10.3390/su13137348 ◽

2021 ◽

Vol 13 (13) ◽

pp. 7348

Author(s):

Ahmad Zuhairi Muzakir ◽

Eng Hwa Yap ◽

Teuku Meurah Indra Mahlia

Keyword(s):

Fuel Consumption ◽

Fuel Economy ◽

Energy Use ◽

Energy Savings ◽

Combustion Engine ◽

National Policy ◽

Motor Vehicles ◽

Transport Sector ◽

Emission Mitigation ◽

Fuel Economy Standards

Final energy use in Malaysia by the transport sector accounts for a consistent share of around 40% and even more in some years within the past two decades. Amongst all modes of transport, land transport dominates and within land transport, private travels are thought to be the biggest contributor. Personal mobility is dominated by the use of conventional internal-combustion-engine-powered vehicles (ICE), with the ownership trend of private cars has not shown any signs of tapering-off. Fuel consumption by private cars is currently not governed by a national policy on fuel economy standards. This is in contrast against not only the many developed economies, but even amongst some of the ASEAN neighbouring countries. The lack of fuel economy standards has resulted in the loss of potentially tremendous savings in fuel consumption and emission mitigation. This study analysed the increase in private vehicle stock to date, the natural fuel economy improvements brought by technology in a business as usual (BAU) situation, and the additional potential energy savings as well as emissions reduction in the ideal case of mandatory fuel economy standards for motor vehicles, specifically cars in Malaysia. The model uses the latest available data, relevant and most current parameters for the simulation and projection of the future scenario. It is found that the application of the fuel economy standards policy for cars in Malaysia is long overdue and that the country could benefit from the immediate implementation of fuel economy standards.

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Fuel economy standards for light duty vehicles and their potential to aid Iran toward achieving fuel saving and emissions reduction

Clean Technologies and Environmental Policy ◽

10.1007/s10098-013-0668-5 ◽

2013 ◽

Vol 16 (3) ◽

pp. 661-666 ◽

Cited By ~ 8

Author(s):

M. Mohammadnejad ◽

M. Ghazvini ◽

T. M. I. Mahlia

Keyword(s):

Fuel Economy ◽

Emissions Reduction ◽

Fuel Saving ◽

Light Duty ◽

Fuel Economy Standards ◽

Light Duty Vehicles

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Sensitivity analysis of potential fuel savings by implementation of fuel economy standards for motorcycle

Clean Technologies and Environmental Policy ◽

10.1007/s10098-013-0603-9 ◽

2013 ◽

Vol 16 (1) ◽

pp. 175-182 ◽

Cited By ~ 1

Author(s):

T. M. I. Mahlia ◽

K. V. Wong ◽

Damon Honnery ◽

M. H. Hasan

Keyword(s):

Sensitivity Analysis ◽

Fuel Economy ◽

Fuel Savings ◽

Fuel Economy Standards

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How Much Do Consumers Value Fuel Economy and Performance? Evidence from Technology Adoption

Review of Economics and Statistics ◽

10.1162/rest_a_01045 ◽

2021 ◽

pp. 1-45

Author(s):

Benjamin Leard ◽

Joshua Linn ◽

Yichen Christy Zhou

Keyword(s):

Fuel Economy ◽

Cost Savings ◽

Data Set ◽

Fuel Savings ◽

Unique Data ◽

Consumer Benefit ◽

Novel Approach ◽

High Valuation ◽

And Performance ◽

Historical Periods

Abstract During historical periods in which US fuel economy standards were unchanging, automakers increased performance but not fuel economy, contrasting with recent periods of tightening standards and rising fuel economy. This paper evaluates the welfare consequences of automakers forgoing performance increases to raise fuel economy as standards have tightened since 2012. Using a unique data set and a novel approach to account for fuel economy and performance endogeneity, we find undervaluation of fuel cost savings and high valuation of performance. Welfare costs of forgone performance approximately equal expected fuel savings benefits, suggesting approximately zero net private consumer benefit from tightened standards.

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