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

descriptionPublicationkeyboard_double_arrow_right Article , Other literature type 01 Jan 2004 English Publisher:WileyJournal:Managerial and Decision Economics, volume 26, pages 51-54 (issn: 0143-6570, eissn: 1099-1468,

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Authors: Steven Tenn; John M. Yun;

doi: 10.1002/mde.1206 , 10.2139/ssrn.503242

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

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Abstract

AbstractWe 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.

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