We consider a two-periods-model of differentiated duopoly. Firms produce an en-ergy consuming household durable differentiated by its energy efficiency. Consumers differ by the weight they apply to their future energy costs when deciding which product to buy. In line with the Japanese Top Runner...

This paper discusses fuel economy regulations in the United States and other countries. We first describe how these programs affect fuel use and other dimensions of the vehicle fleet. We then review different methodologies for assessing the costs of fuel economy regulations and discuss the...

Recent changes to the Corporate Average Fuel Economy (CAFE) standards have created new opportunities for lowering the cost of meeting strict new standards through provisions for credit banking and trading. In this paper, we explore these new markets for reductions in both fuel consumption (fuel...

We identify and examine a novel welfare channel of fuel economy standards through the in-teraction with public transit and households’ location choices. A stricter emission standard for cars decreases the marginal cost of driving and triggers a shift in modal choice from public to private...

We analyse optimal environmental policies in a market that is vertically differentiated in terms of the energy efficiency of products. Considering energy taxes, subsidies to firms for investment in more eco-friendly products, and product standards, we are particularly interested in how...

We analyse optimal environmental policies in a market that is vertically differentiated in terms of the energy efficiency of products. Considering energy taxes, subsidies to firms for investment in more eco-friendly products, and product standards, we are particularly interested in how...

Energy efficiency commitments, often associated with tradable energy efficiency certificates, dubbed white certificates, were recently implemented in the United Kingdom and Italy and will soon start in France. Energy suppliers have to fund a given quantity of energy efficiency measures, or to...

This paper shows that firms respond strategically to ENERGY STAR, a voluntary certification program for energy-efficient products. Firms offer products that bunch at the certification requirement, differentiate certified products in energy and non-energy dimensions, and charge a price premium on...

This paper analyses the adoption of energy-efficiency enhancing technologies by heterogeneous firms. The fact that energy use does not only cause external environmental costs through pollution, but also directly affects the profitability of the firm and hence its behaviour on input and output...

Climate policy instruments in the transportation sector like fuel economy standards (CAFE) and fuel taxes not only affect households' vehicle choice, but also the urban form in the long run. We introduce household level vehicle choice into the urban economic monocentric city model and run...