Design Incentives to Increase Vehicle Size Created from the U.S. Footprint-based Fuel Economy Standards
This study evaluates whether an amendment to the U.S. Corporate Average Fuel Economy (CAFE) standards creates an incentive for manufactures to produce larger vehicles. It is determined that this amendment does create an incentive for manufacturers to produce larger vehicles; especially in light trucks. By producing these larger vehicles, there are the negative effects of lower fuel economy, higher emissions, worse vehicle performance, and higher traffic safety risks.
Description:
This study evaluates whether the amendment which determines fuel economy targets based on vehicle footprint (wheel base by track width) to the U.S. Corporate Average Fuel Economy (CAFE) standards creates an incentive for manufactures to produce larger vehicles. By using an “oligopolistic-equilibrium model” while considering a range of customer preferences, it is determined that this amendment does create an incentive for manufacturers to produce larger vehicles; especially in light trucks. By producing these larger vehicles, there are the negative effects of lower fuel economy, higher emissions, worse vehicle performance, and higher traffic safety risks.
Classification:
Energy Policy
Other
Product Lifecycle:
Pre-production: Research, Design, Development, Testing, and Tooling
Post-production: Service, Reuse, and Recycling
Resource Type:
Case Study
Paper/Report
Institution:
University of Michigan, Ann Arbor
Author & Title:
Kate S. Whitefoot - Design Science, University of Michigan, Ann Arbor; Steven J. Skerlos - Design Science and Mechanical Engineering, University of Michigan, Ann Arbor;
Date Developed:
Friday, May 04, 2012
Keywords:
Fuel Economy,Passenger Vehicles,Policy Incentives
Education Level:
Undergrad Students (13-14)
Undergrad Students (15-16)
Audience:
General Public
Researcher