Journal of Economic Perspectives: Vol. 17 No. 4 (Fall 2003)


Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter


JEP - All Issues

Policy Watch: The Economics of Fuel Economy Standards

Article Citation

Portney, Paul R., Ian W.H. Parry, Howard K. Gruenspecht, and Winston Harrington. 2003. "Policy Watch: The Economics of Fuel Economy Standards." Journal of Economic Perspectives, 17(4): 203-217.

DOI: 10.1257/089533003772034961


One of the most hotly contested of all energy policy issues involves Corporate Average Fuel Economy (or CAFE) standards for new cars and light-duty trucks. Tighter standards would reduce gasoline consumption, and hence both greenhouse gas emissions as well as this country's vulnerability to oil price shocks. But they would also increase the price of new vehicles, worsen traffic congestion and--depending on how they are phased in--possibly even reduce occupant safety. These effects are amenable to economic analysis, and we review the evidence to date bearing on this interesting and important question.

Article Full-Text Access

Full-text Article (Complimentary)


Portney, Paul R.
Parry, Ian W.H.
Gruenspecht, Howard K.
Harrington, Winston


View Comments on This Article (0) | Login to post a comment

Journal of Economic Perspectives

Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)


JEP - All Issues

Virtual Field Journals

AEA Member Login:

AEAweb | AEA Journals | Contact Us