Steering with prices: Fuel and vehicle taxation as market incentives for higher fuel economy

Book · Fri Dec 31 04:00:00 EST 1993

OSTI ID:160538

Gordon, D; DeCicco, J

This paper reviews economic studies to develop estimates of the likely responses of car buyers and automakers to higher fuel taxes or feebates. It finds that feebates averaging 5%--10% of vehicle price are likely to achieve substantial fuel conservation while much larger taxes (amounting to a 100%--200% increase in gas price) would be needed to achieve similar petroleum savings. Since response to either type of pricing incentive is uncertain, stronger fuel economy standards would remain a necessary complement to market incentives.

• OSTI ID: 160538
• Country of Publication: United States
• Language: English

Related Subjects

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
AUTOMOTIVE FUELS
ENERGY CONSERVATION
FUEL CONSUMPTION
TAXES
VEHICLES