How vehicle standards and fuel fees can cut CO2 emissions and boost the economy

If policymakers are to succeed in their efforts to foster economic growth, improve public health, and protect the environment, they need to know which policies work, which don’t, and why. Various modeling efforts have tried to determine which technologies can increase vehicle efficiency, but comparatively little research has focused on the effectiveness of policies aimed at achieving that goal. This report, part of the “Policies That Work” series, fills the gap by analyzing the results of vehicle performance standards and fuel and vehicle levies from around the world. This concise analysis provides an analytical framework for evaluating policies to curb greenhouse gas emissions from road transportation. Each policy is evaluated in terms of its design strengths and flaws, its net socioeconomic costs and benefits, and its success in reducing carbon emissions.