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Searching for hidden costs: A technology-based approach to the energy efficiency gap in light-duty vehicles

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  • Helfand, Gloria
  • McWilliams, Michael
  • Bolon, Kevin
  • Reichle, Lawrence
  • Sha, Mandy
  • Smith, Amanda
  • Beach, Robert

Abstract

The benefit-cost analysis of standards to reduce vehicle greenhouse gas emissions and improve fuel economy by the U.S. Environmental Protection Agency (EPA) and the Department of Transportation (DOT) displays large net benefits from fuel savings for new vehicle buyers. This finding points to an energy efficiency gap: the energy-saving technology provided in private markets appears not to include all the technologies that produce net private benefits. The gap exists if the costs of energy-saving technologies are lower than the present value of fuel reductions, and “hidden costs” – undesirable aspects of the new technologies – do not exceed the net financial benefits. This study examines the existence of hidden costs in energy-saving technologies through a content analysis of auto reviews of model-year 2014 vehicles.

Suggested Citation

  • Helfand, Gloria & McWilliams, Michael & Bolon, Kevin & Reichle, Lawrence & Sha, Mandy & Smith, Amanda & Beach, Robert, 2016. "Searching for hidden costs: A technology-based approach to the energy efficiency gap in light-duty vehicles," Energy Policy, Elsevier, vol. 98(C), pages 590-606.
    • Handle: RePEc:eee:enepol:v:98:y:2016:i:c:p:590-606
    DOI: 10.1016/j.enpol.2016.09.014
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    References listed on IDEAS

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