Technical Paper
Using Economic Analysis to Assess the Viability of Post-2016 MY Greenhouse Gas Emission and Fuel Economy Standards for Light Duty Vehicles
2012-04-16
2012-01-0754
Fundamental to the concept of “sustainable development” is the belief that environmental improvement and economic development are intertwined - that one cannot succeed without the other. From a sustainable development perspective, assessing the economic impact of future standards is as important as evaluating the technological feasibility of achieving those standards. TO determine the potential economic impacts of possible future fuel economy and greenhouse gas (GHG) emission standards, assumptions must be made about technology costs, discount rate, retail price markup, customer willingness to pay, rebound rate and other factors. This paper examines the assumptions used by government agencies and how changes to these assumptions impact the viability of possible post-2016 model year (MY) standards.
