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When adding a fuel efficient car increases an automaker's CAFE penalty

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Listed:
  • Steven Tenn

    (Federal Trade Commission, Washington, DC, USA)

  • John M. Yun

    (Federal Trade Commission, Washington, DC, USA)

Abstract

We derive the conditions that cause an automaker's Corporate Average Fuel Economy (CAFE) fine to increase when it sells an additional, fuel efficient car. Raising the CAFE standards would broaden the range of fuel economies that produce this effect. Copyright © 2005 John Wiley & Sons, Ltd.

Suggested Citation

  • Steven Tenn & John M. Yun, 2005. "When adding a fuel efficient car increases an automaker's CAFE penalty," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 51-54.
    • Handle: RePEc:wly:mgtdec:v:26:y:2005:i:1:p:51-54
    DOI: 10.1002/mde.1206
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    References listed on IDEAS

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    2. Greene, David L, 1991. "Short-run Pricing Strategies to Increase Corporate Average Fuel Economy," Economic Inquiry, Western Economic Association International, vol. 29(1), pages 101-114, January.
    3. Andrew N. Kleit, 2004. "Impacts of Long-Range Increases in the Fuel Economy (CAFE) Standard," Economic Inquiry, Western Economic Association International, vol. 42(2), pages 279-294, April.
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