Vehicle Carbon Emissions Reductions- European Automobile Manufacturers Association Commitment

Vehicle Carbon Emissions
The European Automobile Manufacturers Association (ACEA) has offered, and the European Commission (EC) has accepted, a voluntary commitment to reduce the CO2 emissions from new light-duty passenger vehicles, with firm fleetwide targets of 140 g CO2 /km (B41 mpg for gasoline) by 2008, measured under the new European test cycle (Directives 93/116/EC and 99/100/EC). This represents approximately a 25% reduction from the 1995 average of 187 g/km (B30 mpg) on this cycle. The European cycle is likely to produce lower fuel economy ratings than the U.S. combined urban/ highway cycle, so the ‘‘U.S. equivalent’’ miles per gallon ratings of the year 2008 European fleet will likely be higher than 41 mpg if the targets are met. (more…)

The Process of Energy Efficiency Technology Change

Many readers may be unfamiliar with the way economists typically view the process of technological change, thus it is useful to first establish this common understanding. Furthermore, to understand the potential for public policy to affect energy efficiency, it is also necessary to understand the process through which technology evolves: invention, innovation, energy diffusion, and product use. (more…)