Evaluating US Fuel Economy Standards in a Model with Producer and Household Heterogeneity
通过实证模型评估美国企业平均燃油经济性标准提高的均衡效应，发现利润影响几乎全由国内生产商承担，且福利成本具有累退性，对低收入家庭影响更大。
This paper employs an empirically estimated model to study the equilibrium effects of an increase in the US corporate average fuel economy (CAFE) standards. I identify and model heterogeneity across firms and find that the profit impacts of CAFE fall almost entirely on domestic producers. The welfare analyses consider the simultaneous household decision of vehicle and miles traveled, allowing direct comparison with a gasoline tax. Finally, I consider dynamic impacts in the used car market. I find these comprise nearly half the gross welfare cost of CAFE and fall disproportionately on low-income households. Contrary to previous results, the overall welfare costs are regressive.