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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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Obama climate plan calls for new fuel economy standards for heavy-duty vehicles post-2018; cleaner fuels and investment in advanced fossil energy

Green Car Congress

The plan as outlined also calls for further work on advanced biofuels, advanced batteries and fuel cell technologies in every transportation mode. In coming months, the plan notes, the Department of Transportation will work with other agencies to further explore strategies for integrating alternative fuel vessels into the US flag fleet.

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