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U.S. Department of Energy
Office of Scientific and Technical Information

Fuel economy policies and their effects on automobile ownership, use, and fuel consumption. Final report

Technical Report ·
OSTI ID:6764371
Major improvements in automotive fuel economy have been made and are expected to continue to be made in response to increased petroleum product prices and increased public attention to energy conservation. These technological gains are projected to result in annual automotive fuel consumption falling beneath its 1975 level until about 1990, in spite of the increases in population, automobile ownership, and vehicular travel which are anticipated during that period. Significant auto fuel efficiency improvements and fuel consumption reductions are likely even in the absence of any governmental control over vehicle prices, fuel efficiency, or operating costs. The analysis given explores the additional gains in fuel conservation, as well as the consequences on travel and auto ownership, which are expected to result from enactment of Federal policies designed to promote more fuel-efficient automobiles. Three families of policies are explored: manipulation of gasoline prices, imposition of fuel economy standards, and establishment of fuel economy-based excise taxes and rebates. In all, 21 policy alternatives reflecting different variations of these measures are examined, and the projected impacts on auto sales, fuel economies, prices, ownership, scrappage, travel, and fuel consumption are shown. This analysis indicates that significant additional savings in automotive fuel consumption can be realized through Federal policy action, but that there may also be undesirable side effects on mobility and auto ownership associated with some policies. The forecasts presented are based upon an analytic model of automobile demand and the motor vehicle manufacturing industry. This process involves making supporting assumptions about future population growth, economic conditions, safety and environmental regulations, and automotive technological capability.
Research Organization:
Faucett (Jack) Associates, Inc., Chevy Chase, Md. (USA)
OSTI ID:
6764371
Report Number(s):
JACKFAU-76-137-8
Country of Publication:
United States
Language:
English