Fuel Taxes in United States: Taxes On Gasoline and Diesel Fuel

Fuel Taxes in US
Economists have overwhelmingly favored fuel taxes over fuel economy standards as a means to reduce fuel or gasoline consumption because taxes give maximum flexibility to both vehicle manufacturers and purchasers and because they influence fuel consumption through both fuel demand and vehicle supply by making travel more expensive (thereby reducing vehicle miles traveled) and by creating an economic incentive for manufacturers to build efficient vehicles and for consumers to purchase them. (more…)

New Car Tax Credit Promoting Higher Fuel Economy in Japan

new car tax credit
This latter form of new car taxes can actually serve as an impediment to higher fuel economy to the extent that increased energy efficiency is attained with high-cost technology, such as continuously variable automatic transmissions, hybrid electric vehicles drive trains, and variable valve controls, and such taxes add to the cost of these technologies. (more…)

Tax Credit for New Car Purchase in Europe

tax credit new car
We know of no studies that have examined vehicle taxation incentives programs elsewhere in the world, but it seems likely that there are a number of tax regimes that affect vehicle fuel economy, albeit indirectly.

Aside from new car tax credit for new car aimed specifically at fuel economy or associated vehicle characteristics, (more…)

Long-Term Biofuel Industry Growth Remains Strong

biofuel industry
Biofuels are made from living matter, plant or animal, and are strongly favored by agricultural interests because of the large boost they bring to domestic farms. Most U.S. biofuels is made from corn (ethanol) or soybeans (biodiesel), although several unusual fuel sources are emerging, including algae and oil waste from deep-frying of foods. The biofuels industry experienced meteoric growth in 2005, 2006 and early 2007, but then it began to slow because of high feedstock prices. Private investment in biofuels finished off 2007 at $2.1 billion, according to ‘Global Trends in Sustainable Energy’, a report by New Energy Finance and United Nations Environmental program. (more…)

Fuel Taxes in Europe to Reduce Fuel Consumption

Fuel Taxes in Europe
Analysis of future light-duty transportation energy use require estimates of the impact of fuel prices on travel and fleet fuel economy, estimates of the fuel price elasticity of travel, fuel economy, and fuel consumption are ubiquitous in the literature. However, there is substantial disagreement about the magnitude of these elasticities because travel volumes, fuel economy, and fuel consumption are dependent on several variables other than fuel price and because fuel prices have tended to be volatile during the past few decades, thereby complicating attempts to estimate long-run elasticities. Thus, the magnitude of the effect of changes in fuel taxes in US on fleet fuel economy and on travel volumes and fuel consumption is also subject to considerable disagreement. (more…)

U.S Government Sponsorship For Vehicle Efficiency Technology R&D

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Although the automotive industry is a vigorous sponsor of research and development in vehicle efficiency technology—worldwide, nearly $20 billion U.S. worth in 1997—governments throughout the world sponsor additional automotive R&D, both separately from and in partnership with the industry. This work focuses primarily on four areas: emissions reduction, safety, fuels, and fuel economy. Within the past few years, government sponsorship of automotive R&D has moved sharply in the direction of attempting to advance the performance and cost-effectiveness of automotive fuel cells vehicles, which address three of the four areas: emissions, fuels, and fuel economy. (more…)

Eco Driving Tips & Techniques to Reduce Fuel Consumption

eco driving tips
Throughout the British energy crisis there were some grounds evident that more drivers drove more slowly to conserve their vehicle fuels. This is the basis facts that showed clearly during crisis circumstances, drivers are willing to change and adopt these types of driving strategies: (more…)

Improving Air Quality - Benefit Cost Analysis Perspective

improving air quality
The question has long been not whether or not to reduce air pollution, but by how much and by what means. Since the extent of the reduced discomfort and illness is not clear—and the measurement of peoples’ willingness-to-pay (WTP) for reduced discomfort and illness is uncertain—it is not easy to know how much the pollution should be reduced. But it has always been clear that reducing automotive air pollution had to be part of the overall strategy. (more…)

Reducing the Use of Gasoline | Corporate Average Fuel Economy

gasoline consumption

Whatever the actual motivation, American policymakers perceived a need after 1973 to restrict automobile and light truck consumption of gasoline. How The Energy Policy and Conservation Act of 1975 imposed Corporate Average Fuel Economy (CAFE) standards on all auto and light truck manufacturers who sold vehicles in the Unite d States. The weighted average of miles per gallon (MPG) for each manufacturer’s car sales was required to be at least 18 MPG by 1978 and 27.5 MPG by 1985. Manufacturer s that failed to meet this standard were to be fined $50 per vehicle sold for each gallon (of MPG rating) by which they failed. (more…)