Scandinavian Working Papers in Economics

Working Papers,
Swedish National Road & Transport Research Institute (VTI)

No 2008:12: Policies towards a more efficient car fleet

Svante Mandell ()
Additional contact information
Svante Mandell: vti – Swedish National Road and Transport Research Institute, Postal: Dept. of Transport Economics, P.O. Box 55685, SE-102 15 Stockholm, Sweden

Abstract: Transportation within the EU, as in most of the industrialized world, shows an increasing trend in CO2 emissions. This calls for measures both to decrease the amount of transportation and/or to increase the efficiency in the vehicle fleet. The present paper addresses the latter by providing a simple and transparent analytical model that illustrates how different policy measures address different parts of an interlinked system, which determines the composition of the future car fleet. Apart from being simple, and thereby providing an intuitive framework, the model highlights the difference between initial responses to policies and the outcome in equilibrium both in the short and the long run.

Keywords: Vehicle; fuel-efficiency; policy; CO2

JEL-codes: Q48; Q54; R48

23 pages, December 18, 2008

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Car_fleet_policies_WP.pdf PDF-file 

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