Eskeland, Gunnar S.Mideksa, Torben K.2012-05-312012-05-312008-08https://hdl.handle.net/10986/6793There is a debate among policy analysts about whether fuel taxes alone are the most effective policy to reduce fuel use by motorists, or whether to also use mandatory standards for fuel efficiency. A problem with a policy mandating fuel economy standards is the "rebound effect," whereby owners with more efficient vehicles increase vehicle usage. If an important part of negative externalities from transport are associated with vehicle kilometers (accidents, congestion, road wear) rather than fuel consumption, the rebound effect increases negative externalities. Taxes and standards should be mutually supportive because fuel taxes often meet political resistance. Over time, fuel efficiency standards can reduce political resistance to fuel taxes. Thus, by raising fuel efficiency standards now, politicians may be able to pursue higher fuel tax paths in the future. Another argument in support of fuel efficiency standards and similar policies is that standards to a greater extent than taxes can be announced in advance and still be credible and change the behavior of inventors, firms, and other agents in society. A further argument is that standards can be used with greater force and commitment through international coordination.CC BY 3.0 IGOACCIDENTSAIRAIR POLLUTIONAIR QUALITYALTERNATIVE POLICIESAPPROACHAUTO MANUFACTURERSAUTOMOBILEAUTOMOBILE FUELAUTOMOTIVE FUELAVERAGE FUEL EFFICIENCYBUSBUS SYSTEMSBUSESCAPITAL GAINSCAPITAL GOODSCARCAR FLEET AVERAGECAR INDUSTRYCAR MILEAGECAR OWNERSHIPCAR OWNERSHIP RATESCAR SALESCAR TECHNOLOGYCAR USECARBONCARBON DIOXIDECARBON DIOXIDE EMISSIONSCARBON EMISSIONSCARSCERTIFICATION STANDARDSCHOICE OF FUELCLEAN TRANSPORTATIONCLIMATE CHANGECLIMATE CHANGE POLICYCO2CO2 EMISSIONSCONGESTIONCONSUMPTION OF FUELCOST BENEFIT ANALYSISCOST EFFECTIVE POLICIESCOST EFFECTIVENESSCOST OF GASOLINECOSTS OF FUELCOSTS OF TRAVELCRASHESDEMAND CURVEDEMAND ELASTICITIESDEMAND ELASTICITYDEMAND FOR ENERGYDEMAND FOR GASOLINEDIESELDISCOUNT RATESDISPOSABLE INCOMEDIVIDENDSDRIVINGDRIVING FORCEDRIVING RESTRICTIONSECONOMIC PERSPECTIVESECONOMISTSEFFICIENT VEHICLESELASTICITIESELASTICITIES OF DEMANDELASTICITY OF DEMANDELASTICITY OF TRAVELEMISSIONEMISSION CONTROLEMISSION RATEEMISSION REDUCTIONEMISSION REDUCTIONSEMISSION STANDARDSEMISSION TAXESEMISSIONSEMISSIONS OF POLLUTANTSEMPIRICAL RESEARCHEMPIRICAL STUDIESENERGY CONSERVATIONENERGY CONSUMPTIONENERGY EFFICIENCYENERGY SHORTAGEENERGY SUPPLYENERGY USEENVIRONMENTALENVIRONMENTAL ECONOMICSENVIRONMENTAL PROTECTIONEQUILIBRIUMEXTERNAL COSTSEXTERNAL COSTS OF TRANSPORTEXTERNALITIESFISHERIESFIXED COSTSFOSSILFOSSIL FUELFOSSIL FUEL USEFUEL CONSERVATIONFUEL CONSUMPTIONFUEL COSTFUEL DEMANDFUEL ECONOMYFUEL ECONOMY STANDARDSFUEL EFFICIENCYFUEL EFFICIENCY IMPROVEMENTSFUEL EFFICIENCY STANDARDSFUEL EFFICIENT CARSFUEL PRICEFUEL PRICESFUEL SAVINGSFUEL STANDARDSFUEL TAXFUEL TAX INCREASEFUEL TAX INCREASESFUEL TAXATIONFUEL TAXESFUEL TYPESFUEL USEFUELSGAS GUZZLER TAXGAS TAXGAS TAXESGASOLINEGASOLINE CONSUMPTIONGASOLINE DEMANDGASOLINE PRICEGASOLINE PRICESGASOLINE TAXGASOLINE TAXESGLOBAL ENVIRONMENTGOODS TRANSPORTGREENHOUSE GASGREENHOUSE GAS EMISSIONGREENHOUSE GAS EMISSION REDUCTIONSGREENHOUSE GAS EMISSIONSGREENHOUSE GASESHEAVY VEHICLESIMPROVEMENT IN FUEL EFFICIENCYIMPROVEMENTS IN ENERGY EFFICIENCYIMPROVEMENTS IN FUEL EFFICIENCYINCOME LEVELSINSURANCELIGHT TRUCKSLOCAL AIR POLLUTANTSMARGINAL COSTMARGINAL COSTSMARKET PRICESMILEAGEMOTOR VEHICLEMOTOR VEHICLE EMISSIONSMOTOR VEHICLE FUELMOTOR VEHICLESMOTORISTSNATIONAL OILNEGATIVE EXTERNALITIESNOISEOILOIL CONSUMPTIONOIL EMBARGOESOIL EXPORTING COUNTRIESOIL PRICEOIL PRICESOIL SUPPLYPASSENGER CARSPEDESTRIANSPERSONAL VEHICLESPETROLEUMPETROLEUM USEPOLICY INSTRUMENTSPOLICY MAKERSPOLITICAL ECONOMYPOLLUTERSPOLLUTIONPOLLUTION CONTROLPOLLUTION CONTROL POLICIESPRICE CHANGESPRICE ELASTICITIESPRICE ELASTICITYPRIVATE SECTORPRODUCERSPROPERTY RIGHTSPUBLIC TRANSPORTPURCHASESQUOTASRATIONAL EXPECTATIONSREAL RATE OF INTERESTROADROAD SPACEROAD USERROAD USER CHARGESSAFETYSOCIAL COSTSSUSTAINABLE TRANSPORTTAX RATETAX RATESTECHNOLOGICAL CHANGETRAFFICTRAFFIC ACCIDENTSTRAFFIC FATALITIESTRANSPORTTRANSPORT INFRASTRUCTURETRANSPORTATIONTRANSPORTATION FUELTRANSPORTATION FUEL USETRANSPORTATION FUELSTRANSPORTATION SERVICESTRAVEL DEMANDTRIPSTRUCKSVEHICLEVEHICLE FUEL EFFICIENCYVEHICLE KILOMETERSVEHICLE KILOMETRESVEHICLE MILESVEHICLE MODELVEHICLE USAGEVEHICLE USEWELFARE ECONOMICSWELFARE GAINSWILLINGNESS TO PAYWORLD MARKET PRICESWorld Bank10.1596/1813-9450-4695