GRA
Well-known member
Via GCC:
http://www.greencarcongress.com/2015/10/20151012-mit.htmlMIT study finds carbon prices more cost-effective than fuel economy regs at reducing CO2 emissions; fuel economy regs more efficient at reducing fuel use
Researchers at the MIT Joint Program on the Science and Policy of Global Change have compared the worldwide economic, environmental, and energy impacts of currently planned fuel economy standards (extended to the year 2050) with those of region-specific carbon prices designed to yield identical CO2 emissions reductions.
Their study, which appears in the Journal of Transport Economics and Policy, finds that such stringent fuel economy standards would cost the economy 10% of global gross domestic product (GDP) in 2050, compared with a 6% cost under carbon pricing. This finding reinforces economists’ contention that improving the efficiency of motor vehicles through fuel economy standards will yield significantly less CO2 emissions reduction per dollar than an economy-wide instrument that encourages such cutbacks where they are cheapest—principally in the electric power and industrial sectors.
However, the fuel economy standards modeled in the study did prove beneficial in terms of fuel consumption: They reduced fuel used in passenger vehicles by 47% relative to a no-policy scenario in 2050, versus only 6% under carbon pricing.
"Many developed countries are choosing very expensive ways to reduce CO2 emissions, but if that’s a top priority, they should go with a price on carbon. If they’re more focused on energy independence, fuel economy standards can deliver, but a tax on gasoline would be more cost-effective. What makes our study unique is that we used a global model that captures market linkages around the world, rather than within a single nation, region or sector. . . ."