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

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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). —Karplus et al. Paltsev, M. Babiker, J.M.

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MIT Energy Initiative report on transforming the US transportation system by 2050 to address climate challenges

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Overall, we have substantial opportunities for reducing environmental and climate impacts from light-duty road vehicles. However, the flexibility and lower costs of PHEVs appear to trump this simplicity, certainly in the nearer term. The MIT Energy Initiative is MIT’s hub for energy research, education, and outreach.

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