PPASS Seminar Series feat. Lucas Davis: Are Fuel Economy Standards Regressive?
Abstract (joint with ChrisKnittel) Despite widespread agreement that a carbon tax would be more efficient, many countries use fuel economy standards to reduce transportation-related carbon dioxide emissions. We pair a simple model of the automobile manufacturers' profit maximization problem with unusually-rich nationally representative data on vehicle registrations to estimate the distributional impact of U.S. fuel economy […]