On the Incentives to Provide Fuel-Efficient Automobiles

We argue that the provision of more fuel-efficient cars necessitates specific aerodynamic shapes. We show that the presence of this technological constraint may reduce the incentives to provide fuel efficiency. In equilibrium, cars become more similar and aerodynamic as fuel prices increase. However, the provided level of fuel efficiency falls short of the social optimal one such that a fuel-economy standard is welfare-enhancing.

15. Juni 2001

Autoren Hans Degryse Andreas Irmen

Ihr Kontakt

Für Wissenschaftler/innen

Professor Hans Degryse, Ph.D.
Professor Hans Degryse, Ph.D.

Für Rückfragen stehe ich Ihnen gerne zur Verfügung.

Anfrage per E-Mail

Für Journalistinnen/en

Mitglied der Leibniz-Gemeinschaft LogoTotal-Equality-LogoGefördert durch das BMWK