2015
DOI: 10.3141/2502-09
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Effect of Improving Vehicle Fuel Efficiency on Fuel Tax Revenue and Greenhouse Gas Emissions

Abstract: Vehicle fuel economy improvement has proved to be one of the most effective policies in controlling gasoline demand and greenhouse gas emissions in the transportation sector. However, such improvement also results in the decrease of fuel tax revenue, the main funding source for building and maintaining the U.S. transportation infrastructure. Conversely, fuel efficiency improvement reduces the marginal and average cost of travel, thus encouraging drivers to drive more, and that in turn increases gasoline consum… Show more

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Cited by 11 publications
(5 citation statements)
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“…Interestingly, a rebound effect is documented in the literature. It indicates that reduction of fuel consumption by improvement in fuel efficiency is relatively small and declines over time (16)(17)(18)(19)(20)(21). Sensitivity analysis of the CNG vehicle adoption rate with respect to fuel efficiency, as presented in Figure 3b, demonstrates that higher fuel efficiency leads to lower adoption rates.…”
Section: Sensitivity Analysismentioning
confidence: 99%
“…Interestingly, a rebound effect is documented in the literature. It indicates that reduction of fuel consumption by improvement in fuel efficiency is relatively small and declines over time (16)(17)(18)(19)(20)(21). Sensitivity analysis of the CNG vehicle adoption rate with respect to fuel efficiency, as presented in Figure 3b, demonstrates that higher fuel efficiency leads to lower adoption rates.…”
Section: Sensitivity Analysismentioning
confidence: 99%
“…Several empirical studies have addressed the role of endogeneity (in either form) in transportation planning, ranging from general demand and supply frameworks to different aspects of travel behavior, including safety (21,22), vehicle ownership and fuel consumption (23)(24)(25)(26)(27)(28), urban form and residential location impacts (14,(29)(30)(31), and activity scheduling and time use (32).…”
Section: Literature Reviewmentioning
confidence: 99%
“…Regarding the methodology utilized in this study, while there is a substantial body of literature on the application of statistical methods in transportation research [14][15][16][17][18][19], a few of previous studies focused on application of MCA in transportation research. Mitchell et al [20] compared novice and full-license driver common crash types in Australia using corresponding analysis.…”
Section: Multiple Correspondence Analysismentioning
confidence: 99%