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When adding a fuel efficient car increases an automaker's CAFE penalty
Author(s) -
Tenn Steven,
Yun John M.
Publication year - 2005
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.1206
Subject(s) - automotive industry , range (aeronautics) , raising (metalworking) , business , industrial organization , fuel efficiency , economics , automotive engineering , microeconomics , engineering , mechanical engineering , aerospace engineering
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.