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MIT study finds fuel economy standards are 6-14 times less cost effective than fuel tax for reducing gasoline use

Green Car Congress

In a study published in the journal Energy Economics , MIT researchers have found that a fuel economy standard is at least six to fourteen times less cost effective than a fuel tax when targeting an identical reduction in cumulative gasoline use (20% by 2050). Babiker (2013) Energy Economics , 36: 322–333 doi: 10.1016/j.eneco.2012.09.001.

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Study explores impact of changing gasoline and diesel taxes in Europe

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from an environmental viewpoint, because 1 L of diesel fuel contains more carbon than 1 L of gasoline and because diesel-powered cars emit more pollutants such as nitrogen oxides (NO x ) and particulates [but less carbon monoxide (CO) and non-methane volatile organic compounds (NMVOCs)], diesel fuel should be more taxed than gasoline.

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Next 10 report finds California will meet or exceed original target of 1.5M ZEVs by 2025

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annual growth from 2013 to 2025 to meet its goal. But with a 53% increase in growth from 2013-2017, the annual growth rate required to meet the ZEV goal from 2017 on has decreased to 20% annually. Volkswagen, Daimler, Volvo and Nissan have announced plans to electrify their fleets over the next 10 years. ZEV sales increased 29.1%

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GFEI report suggests $2T savings from fuel economy improvements in ICE vehicles through 2025 can help fund long-term transition to plug-ins

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Meanwhile, significant gains in vehicle fuel economy over the coming decades are possible and very much needed globally in order to address pressing issues of climate change, energy security and sustainable mobility. The global vehicle fleet is predicted to double by 2050 with 80% of that growth in the developing world.

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CEPS task force report identifies tightening emissions standards as key policy to hit EU 60% reduction in transport GHG; full life-cycle emissions optimal metric

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The report of the task force, which was convened in 2011, brought together the views of a diverse group of stakeholders, including the car and oil industries, business associations, international organizations, EU member states and NGOs. June 2013). Focusing on one specific technology—e.g.

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California ARB mods to ZEV regulations for IVMs would result in ~1.9% drop in total ZEV/TZEV units 2018-2025; no impact on air quality requirements

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In other words, the automakers still have to meet the fleet-based emissions requirements through their sales mix. Its goal was and is to reduce the environmental impact of light-duty vehicles through the gradual introduction of ZEVs into the California fleet.

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