English, Article, Journal or magazine article edition: Fuel Efficiency and Motor Vehicle Travel: The Declining Rebound Effect Kenneth A. Small; Kurt Van Dender

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Bookmark: http://trove.nla.gov.au/version/33840
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Fuel Efficiency and Motor Vehicle Travel: The Declining Rebound Effect
Author
  • Kenneth A. Small
  • Kurt Van Dender
Physical Description
  • preprint
Notes
  • We estimate the rebound effect for motor vehicles, by which improved fuel efficiency causes additional travel, using a pooled cross section of US states for 1966-2001. Our model accounts for endogenous changes in fuel efficiency, distinguishes between autocorrelation and lagged effects, includes a measure of the stringency of fuel-economy standards, and allows the rebound effect to vary with income, urbanization, and the fuel cost of driving. At sample averages of variables, our simultaneous-equations estimates of the short- and long-run rebound effect are 4.5% and 22.2%. But rising real income caused it to diminish substantially over the period, aided by falling fuel prices. With variables at 1997-2001 levels, our estimates are only 2.2% and 10.7%, considerably smaller than values typically assumed for policy analysis. With income at the 1997 – 2001 level and fuel prices at the sample average, the estimates are 3.1% and 15.3%, respectively.
  • Carbon dioxide; Fuel economy; Travel demand; Motor vehicle use; Rebound effect
  • RePEc:irv:wpaper:050603
Language
  • English
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