Another Look at U.S. Passenger Vehicle Use and the 'Rebound' Effect from Improved Fuel Efficiency

1993 ◽  
Vol 14 (4) ◽  
Author(s):  
Clifton T Jones
Keyword(s):  
Fuel Efficiency ◽  
Rebound Effect ◽  
Passenger Vehicle

scholarly journals Vehicle Scrappage and Gasoline Policy

2015 ◽  
Vol 105 (3) ◽  
pp. 1312-1338 ◽  
Author(s):  
Mark R. Jacobsen ◽  
Arthur A. van Benthem
Keyword(s):  
Fuel Economy ◽  
Fuel Efficiency ◽  
Rebound Effect ◽  
Gasoline Prices ◽  
Fuel Savings ◽  
Emissions Leakage ◽  
Fuel Economy Standards ◽  
Used Car ◽  
Vehicle Scrappage ◽  
Vehicle Market

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)

scholarly journals Car usage, $${\text {CO}}_{2}$$ emissions and fuel taxes in Europe

SERIEs ◽  
2019 ◽  
Vol 11 (2) ◽  
pp. 203-241 ◽  
Author(s):  
Gustavo A. Marrero ◽  
Jesús Rodríguez-López ◽  
Rosa Marina González
Keyword(s):  
Road Traffic ◽  
Consumer Preferences ◽  
Fuel Efficiency ◽  
Rebound Effect ◽  
European Countries ◽  
Motor Vehicles ◽  
Tax Rates ◽  
Pigouvian Tax ◽  
The Road ◽  
On The Road

Abstract The number of diesel cars in Europe has grown significantly over the last three decades, a process usually known as dieselization, and they now account for nearly 40% of the cars on the road. We build on a dynamic general equilibrium model that makes a distinction between diesel motor and gasoline motor vehicles and calibrate it for main European countries. Firstly, we find that the dieselization can be explained by a change in consumer preferences paired with the productivity gains from the specialization of the European automotive industry. Secondly, the lenient tax policies in favor of diesel fuel help to explain the rebound effect in road traffic. Finally, from a normative standpoint, the model suggests that a tax discrimination based on the carbon content of each fuel (higher for diesel relative to gasoline) would actually be more effective in curbing $${\text {CO}}_{2}$$CO2 emissions rather than a tax based on fuel efficiency. Based on the existing studies, we also document that other external costs of diesel are always higher than those of gasoline, and the Pigouvian tax rates should reflect this aspect. This recommendation is radically different to the existing fuel tax design in most European countries.

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