Econometric modeling of the impact of higher CAFE standards on producer and consumer welfare, gasoline consumption, externalities from increased driving, and the emissions of traditional pollutants is presented. Model results indicate that a long-run 3.0 MPG increase in the CAFE standard would impose social welfare losses of $5.6 billion per year and save 5.1 billion gallons of gasoline per year. The 3.0 MPG increase is 20 times more expensive than the gas tax increase.
|Original language||English (US)|
|Number of pages||6|
|Specialist publication||Energy (Norwalk, Connecticut)|
|State||Published - Jan 1 2002|
All Science Journal Classification (ASJC) codes
- Energy (miscellaneous)