Financial Management White Papers
The Economic Costs of Fuel Economy Standards Versus a Gasoline Tax
Overview In recent years, there has been renewed interest in the Congress in policies that would reduce gasoline consumption in the United States. That interest has been motivated primarily by concerns about the nation's energy security and about the risk that carbon emissions, 20 percent of which come from gasoline consumption, may affect the Earth's climate. This paper compares the economic costs of two methods for reducing gasoline consumption: raising the corporate average fuel economy (CAFE) standards for passenger vehicles and increasing the federal tax on gasoline. In analyzing CAFE standards, the study also estimates the potential cost savings from allowing automakers to trade fuel economy credits with one another as a way of complying.
| Publisher | Congressional Budget Office | File Format | |
|---|---|---|---|
| Date Published | December 2003 | ||
| Format | White Papers | ||
| Topics | |||
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