IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v113y2014icp1323-1337.html
   My bibliography  Save this article

Analysis of corporate average fuel economy regulation compliance scenarios inclusive of plug in hybrid vehicles

Author

Listed:
  • Al-Alawi, Baha M.
  • Bradley, Thomas H.

Abstract

The US Corporate Average Fuel Economy (CAFE) standards regulate the fleet fuel economy of automakers that manufacture and sell automobiles in the US. CAFE standards will increase by 24% (for the passenger car fleet) – 35% (for the light-truck fleet) over the period 2011–2025 leading to a renewed interest in the role that advanced technologies will play in enabling CAFE compliance. This study compares the effects of 2 designs of plug in hybrid electric (PHEV) to estimate the cost of CAFE compliance with PHEVs as a component of the domestic passenger car fleet and as a component of the domestic light truck fleet. Results show that for many of the US automakers and for a variety of incremental cost scenarios, the introduction of PHEVs into the vehicle fleet reduces the costs of CAFE compliance relative to baseline scenarios. Overall, results show that PHEVs can contribute to a reduction in the costs of CAFE compliance for domestic automakers and should be more thoroughly considered in near-term regulatory and industrial analyses of CAFE compliance strategies.

Suggested Citation

  • Al-Alawi, Baha M. & Bradley, Thomas H., 2014. "Analysis of corporate average fuel economy regulation compliance scenarios inclusive of plug in hybrid vehicles," Applied Energy, Elsevier, vol. 113(C), pages 1323-1337.
    • Handle: RePEc:eee:appene:v:113:y:2014:i:c:p:1323-1337
    DOI: 10.1016/j.apenergy.2013.08.081
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261913007253
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2013.08.081?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alan J. Krupnick & Margaret A. Walls & Carol T Collins, 1993. "Global Warming and Urban Smog: Cost-Effectiveness of CAFE Standards and Alternative Fuels," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 75-98.
    2. Cheah, Lynette & Heywood, John, 2011. "Meeting U.S. passenger vehicle fuel economy standards in 2016 and beyond," Energy Policy, Elsevier, vol. 39(1), pages 454-466, January.
    3. David L. Greene, 1990. "CAFE OR PRICE?: An Analysis of the Effects of Federal Fuel Economy Regulations and Gasoline Price on New Car MPG, 1978-89," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 37-58.
    4. Austin, David & Dinan, Terry, 2005. "Clearing the air: The costs and consequences of higher CAFE standards and increased gasoline taxes," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 562-582, November.
    5. Bezdek, Roger H. & Wendling, Robert M., 2005. "Potential long-term impacts of changes in US vehicle fuel efficiency standards," Energy Policy, Elsevier, vol. 33(3), pages 407-419, February.
    6. Al-Alawi, Baha M. & Bradley, Thomas H., 2013. "Total cost of ownership, payback, and consumer preference modeling of plug-in hybrid electric vehicles," Applied Energy, Elsevier, vol. 103(C), pages 488-506.
    7. Greene, David L, 1998. "Why CAFE worked," Energy Policy, Elsevier, vol. 26(8), pages 595-613, July.
    8. Shiau, Ching-Shin Norman & Samaras, Constantine & Hauffe, Richard & Michalek, Jeremy J., 2009. "Impact of battery weight and charging patterns on the economic and environmental benefits of plug-in hybrid vehicles," Energy Policy, Elsevier, vol. 37(7), pages 2653-2663, July.
    9. Teotia, Arvind & Vyas, Anant & Cuenca, Rolando & Stodolsky, Frank & Eberhardt, James, 1999. "CAFE compliance by light trucks: economic impacts of clean diesel engine," Energy Policy, Elsevier, vol. 27(15), pages 889-900, December.
    10. Shiau, Ching-Shin Norman & Michalek, Jeremy J. & Hendrickson, Chris T., 2009. "A structural analysis of vehicle design responses to Corporate Average Fuel Economy policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(9-10), pages 814-828, November.
    11. Kirby, Eric G, 1995. "An evaluation of the effectiveness of US CAFE policy," Energy Policy, Elsevier, vol. 23(2), pages 107-109, February.
    12. Thorpe, Steven G, 1997. "Fuel Economy Standards, New Vehicle Sales, and Average Fuel Efficiency," Journal of Regulatory Economics, Springer, vol. 11(3), pages 311-326, May.
    13. Pinelopi Koujianou Goldberg, 1998. "The Effects of the Corporate Average Fuel Efficiency Standards in the US," Journal of Industrial Economics, Wiley Blackwell, vol. 46(1), pages 1-33, March.
    14. Bradley, Thomas H. & Frank, Andrew A., 2009. "Design, demonstrations and sustainability impact assessments for plug-in hybrid electric vehicles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(1), pages 115-128, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zixuan Wang & Xiuzhang Li, 2021. "Demand Subsidy versus Production Regulation: Development of New Energy Vehicles in a Competitive Environment," Mathematics, MDPI, vol. 9(11), pages 1-22, June.
    2. Li, Yaoming & Zhang, Qi & Liu, Boyu & McLellan, Benjamin & Gao, Yuan & Tang, Yanyan, 2018. "Substitution effect of New-Energy Vehicle Credit Program and Corporate Average Fuel Consumption Regulation for Green-car Subsidy," Energy, Elsevier, vol. 152(C), pages 223-236.
    3. Lee, Yongseung & Kim, Chongman & Shin, Juneseuk, 2016. "A hybrid electric vehicle market penetration model to identify the best policy mix: A consumer ownership cycle approach," Applied Energy, Elsevier, vol. 184(C), pages 438-449.
    4. Al-Alawi, Baha M. & Coker, Alexander D., 2018. "Multi-criteria decision support system with negotiation process for vehicle technology selection," Energy, Elsevier, vol. 157(C), pages 278-296.
    5. Wang, Sinan & Zhao, Fuquan & Liu, Zongwei & Hao, Han, 2018. "Impacts of a super credit policy on electric vehicle penetration and compliance with China's Corporate Average Fuel Consumption regulation," Energy, Elsevier, vol. 155(C), pages 746-762.
    6. Ribau, João P. & Silva, Carla M. & Sousa, João M.C., 2014. "Efficiency, cost and life cycle CO2 optimization of fuel cell hybrid and plug-in hybrid urban buses," Applied Energy, Elsevier, vol. 129(C), pages 320-335.
    7. Finesso, Roberto & Spessa, Ezio & Venditti, Mattia, 2016. "Cost-optimized design of a dual-mode diesel parallel hybrid electric vehicle for several driving missions and market scenarios," Applied Energy, Elsevier, vol. 177(C), pages 366-383.
    8. Finesso, Roberto & Spessa, Ezio & Venditti, Mattia, 2014. "Layout design and energetic analysis of a complex diesel parallel hybrid electric vehicle," Applied Energy, Elsevier, vol. 134(C), pages 573-588.
    9. Wang, Sinan & Chen, Kangda & Zhao, Fuquan & Hao, Han, 2019. "Technology pathways for complying with Corporate Average Fuel Consumption regulations up to 2030: A case study of China," Applied Energy, Elsevier, vol. 241(C), pages 257-277.
    10. Babu, Ajay & Ashok, S., 2015. "Improved parallel mild hybrids for urban roads," Applied Energy, Elsevier, vol. 144(C), pages 276-283.
    11. Zhu, Dengting & Zheng, Xinqian, 2018. "A new asymmetric twin-scroll turbine with two wastegates for energy improvements in diesel engines," Applied Energy, Elsevier, vol. 223(C), pages 263-272.
    12. Soylu, Seref, 2014. "The effects of urban driving conditions on the operating characteristics of conventional and hybrid electric city buses," Applied Energy, Elsevier, vol. 135(C), pages 472-482.
    13. Chen, Yuche & Meier, Alan, 2016. "Fuel consumption impacts of auto roof racks," Energy Policy, Elsevier, vol. 92(C), pages 325-333.
    14. Sen, Burak & Noori, Mehdi & Tatari, Omer, 2017. "Will Corporate Average Fuel Economy (CAFE) Standard help? Modeling CAFE's impact on market share of electric vehicles," Energy Policy, Elsevier, vol. 109(C), pages 279-287.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Yimin & Helfand, Gloria E., 2009. "The Alternative Motor Fuels Act, alternative-fuel vehicles, and greenhouse gas emissions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(8), pages 755-764, October.
    2. Clerides, Sofronis & Zachariadis, Theodoros, 2008. "The effect of standards and fuel prices on automobile fuel economy: An international analysis," Energy Economics, Elsevier, vol. 30(5), pages 2657-2672, September.
    3. Rubin, Jonathan & Leiby, Paul N. & Greene, David L., 2009. "Tradable fuel economy credits: Competition and oligopoly," Journal of Environmental Economics and Management, Elsevier, vol. 58(3), pages 315-328, November.
    4. Timilsina, Govinda R. & Dulal, Hari B., 2009. "A review of regulatory instruments to control environmental externalities from the transport sector," Policy Research Working Paper Series 4867, The World Bank.
    5. Timilsina, Govinda R. & Dulal, Hari B., 2009. "Regulatory instruments to control environmental externalities from the transport sector," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 41, pages 80-112.
    6. Jenn, Alan & Azevedo, Inês & Michalek, Jeremy Joseph, 2019. "Alternative-Fuel-Vehicle Policy Interactions Increase U.S. Greenhouse Gas Emissions," OSF Preprints n69tp, Center for Open Science.
    7. Whistance, Jarrett & Thompson, Wyatt, 2014. "The role of CAFE standards and alternative-fuel vehicle production credits in U.S. biofuels markets," Energy Policy, Elsevier, vol. 74(C), pages 147-157.
    8. Thomas Klier & Joshua Linn, 2011. "Corporate Average Fuel Economy Standards and the Market for New Vehicles," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 445-462, October.
    9. Brozovic, Nicholas & Ando, Amy Whritenour, 2009. "Defensive purchasing, the safety (dis)advantage of light trucks, and motor-vehicle policy effectiveness," Transportation Research Part B: Methodological, Elsevier, vol. 43(5), pages 477-493, June.
    10. Tscharaktschiew, Stefan, 2014. "Shedding light on the appropriateness of the (high) gasoline tax level in Germany," Economics of Transportation, Elsevier, vol. 3(3), pages 189-210.
    11. Wang, Yiwei & Miao, Qing, 2021. "The impact of the corporate average fuel economy standards on technological changes in automobile fuel efficiency," Resource and Energy Economics, Elsevier, vol. 63(C).
    12. Jun, Seung-Pyo & Yoo, Hyoung Sun & Kim, Ji-Hui, 2016. "A study on the effects of the CAFE standard on consumers," Energy Policy, Elsevier, vol. 91(C), pages 148-160.
    13. Wells, Peter & Varma, Adarsh & Newman, Dan & Kay, Duncan & Gibson, Gena & Beevor, Jamie & Skinner, Ian, 2013. "Governmental regulation impact on producers and consumers: A longitudinal analysis of the European automotive market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 47(C), pages 28-41.
    14. Sofronis Clerides & Theodoros Zachariadis, 2006. "Are standards Effective in Improving Automobile Fuel Economy?," University of Cyprus Working Papers in Economics 6-2006, University of Cyprus Department of Economics.
    15. Kangda Chen & Fuquan Zhao & Han Hao & Zongwei Liu & Xinglong Liu, 2021. "Hierarchical Optimization Decision-Making Method to Comply with China’s Fuel Consumption and New Energy Vehicle Credit Regulations," Sustainability, MDPI, vol. 13(14), pages 1-25, July.
    16. Pizer, William A. & Burtraw, Dallas & Harrington, Winston & Newell, Richard G. & Sanchirico, James N., 2005. "Modeling Economywide versus Sectoral Climate Policies Using Combined Aggregate-Sectoral Models," Discussion Papers 10502, Resources for the Future.
    17. Banzhaf, H. Spencer & Kasim, M. Taha, 2019. "Fuel consumption and gasoline prices: The role of assortative matching between households and automobiles," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 1-25.
    18. Stavins, Robert & Jaffe, Adam & Newell, Richard, 2000. "Technological Change and the Environment," Working Paper Series rwp00-002, Harvard University, John F. Kennedy School of Government.
    19. Shanjun Li & Joshua Linn & Erich Muehlegger, 2014. "Gasoline Taxes and Consumer Behavior," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 302-342, November.
    20. Lawrence Goulder, 2007. "Distributional and Efficiency Impacts of Increased U.S. Gasoline Taxes," Discussion Papers 07-009, Stanford Institute for Economic Policy Research.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:113:y:2014:i:c:p:1323-1337. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.