The Cost and Effectiveness of Policies to Reduce Vehicle Emissions

image of The Cost and Effectiveness of Policies to Reduce Vehicle Emissions

Transport sector policies already contribute to moderating greenhouse gas emissions from road vehicles. They are increasingly designed to contribute to overall societal targets to mitigate climate change. While abatement costs in transport are relatively high, there are plausible arguments in favour of further abatement in this sector. The empirical basis to decide upon combinations of fuel economy standards and fuel taxes, however, remains weak. This Round Table investigates the effectiveness and costs of various mitigation options in road transport, and discusses the distribution of abatement efforts across sectors of the economy.

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Examining Fuel Economy and Carbon Standards for Light Vehicles

International Transport Forum

Under the European Union’s Voluntary Agreement with car manufacturers, average light-vehicle CO2 emissions in 2004 were 12.4% below 1995 levels but appeared unlikely to achieve the 25% reduction needed to reach the 140 g/km target for “per vehicle” CO2 emissions for 2008. The EU is now considering a regulatory approach to further reduce average vehicle emissions, in the form of CO2 emission or fuel economy standards. Such standards have been used by a number of countries, including the United States (although US standards have been little altered since their 1975 promulgation), Japan, China, and several others; and those that have been in existence for some time - e.g. in the United States and Japan – have been successful in achieving their targeted levels of new vehicle fuel economy.

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