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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 finds that increased vehicle travel and decreased occupancy have undercut the impact of improving fuel economy over last 40 years

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Sivak found that while the vehicle fuel economy of the entire light-duty fleet improved by 40% (from 13 mpg US to 21.6 l/100km), because of the decrease in vehicle load, the occupant fuel economy only improved by 17% (from 24.8 —Sivak 2013. occupants carried) decreased by 27% (from 1.9 mpg US, or from 18.1

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Study explores impact of changing gasoline and diesel taxes in Europe

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Recent work from the French transport accounts commission confirmed previous results of the French Ministry for Sustainable Development: gasoline is overtaxed, and diesel fuel is undertaxed. A scheme including a decreased gasoline tax could bring about an increase in CO 2 emissions.

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New Zealand simplifies Road User Charges system, extends exemption for light electric motor vehicles from 2013 to 2020

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Since some 36% of diesel is used off-road, such as on farms, by manufacturing, industrial and commercial ventures, and boats, a fuel tax for road use would impose an unfair burden onto these sectors, the government says.). In New Zealand, diesel and electric-powered vehicles pay for their road use through road user charges.

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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. per liter ($0.26/gallon

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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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This should result in a fleet of vehicles with a much better energy efficiency using different low- carbon fuels for different applications, whatever the most cost-effective combination is. The EU must push member states to align taxation levels of different fuels and vehicle types and stop indirect subsidies. June 2013).

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