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Munich Personal RePEc Archive

Fast and Furious (and Dirty): HowAsymmetric Regulation May HinderEnvironmental Policy

Cristian Huse

Stockholm School of Economics

2014

Online athttp://mpra.ub.uni-muenchen.de/48909/

MPRA Paper No. 48909, posted 11. February 2014 04:27 UTC

http://mpra.ub.uni-muenchen.de/48909/http://mpra.ub.uni-muenchen.de/48909/http://mpra.ub.uni-muenchen.de/

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pe 0.7pg

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yit= 1{t}1{i } +1{t} +1{i } +xit+uit

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t = 1,...,T i = 1,...,N yit 1{A} xit

i t 1{t }

i t

1{t } 1{t SR}

1{tLR}

1{tLR1} 1{tLR2}

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SR LR LR1 LR2

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Qe(pe, pg,y,kple,kplg, N) = Neqee (pe,y,kple) pe/pg > k

=

Neq

ee (pe,y,kple),

=a,e

Nqe (pe,y,kple)

pe/pg =k

= =a,e

Nq

e (pe,y,kple) :=Qe

e +Qa

e pe/pg < k

pe/pg k

tvktit i= e, g, a

g qg|g = vktgt /kplg e qe|e = vktet /kple a qf|a = 1{pet/pgt > k}vktat /kplg + 1{pet/pgt k

Qet = eNt

kple+

aNtkple

Qgt = gNt

kplg+qG

pet/pgt < k

E cheap E dear t t e a

:= (a, e, g) = kpleNt QEcheapet QEdearet , kpleNt QEcheapet , 1 e a kple

QEcheapet QEdearet

qG

kple

Nt

Nt

= (a, e, g)

t t

QEcheapet QEdearet

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= 1500,1750 2000

kple = 8 kple = 6, 7, 10

kpl

kple kplg

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http://www.riksdagen.se/Webbnav/index.aspx?nid=3911&bet=2005:1248http://ngm.nationalgeographic.com/2007/10/biofuels/did-you-know-learnhttp://www.regeringen.se/sb/d/119/a/110590http://www.regeringen.se/sb/d/586/a/79866

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http://www.trafikverket.se/PageFiles/25435/nov10/04-2011_PM%20uppdaterade%20reduktionsv%C3%A4rden110308.pdfhttp://www.trafikverket.se/PageFiles/25435/nov10/04-2011_PM%20uppdaterade%20reduktionsv%C3%A4rden110308.pdfhttp://www.telegraph.co.uk/motoring/news/2753506/Ford-Model-T-reaches-100.htmlhttp://www.telegraph.co.uk/motoring/news/2753506/Ford-Model-T-reaches-100.htmlhttp://www.riksdagen.se/Webbnav/index.aspx?nid=3911&bet=2007%3A380

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1{y2008} 1{i } 28.47 27.78

[4.16] [13.89] [13.82] [0.06]

9, 686 8, 110 8, 110 6, 594 6, 498 .012 .143 .147 .007 .011

1{y= 2008} 1{i } 34.14 (2.75) (1.43) (1.50) (2.11) (0.51)

[11.40]

1{y= 2009} 1{i } 25.86 28.77 26.43 19.85 5.76(5.56) (3.07) (2.80) (2.25) (0.42)

[4.96] [13.79] [13.11] [3.10] [1.32]

9, 686 8, 110 8, 110 6, 594 6, 498 .014 .143 .147 .008 .012

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1{tSR} 1{i }

[1.48] [0.93] [0.89] [1.31] [1.11] [2.58]

1{tLR} 1{i } 24.60 22.35 19.22 16.75 23.46 1.555

[6.08] [4.74] [3.77] [4.04] [4.97] [1.08]

1{tSR} 1{i } 2.65 7.29 7.30 2.17 1.88 10.70(0.41) (

0.72) (

0.76) (0.48) (0.26) (

0.62)

[1.48] [0.93] [0.89] [1.31] [1.11] [2.58]

1{tLR1} 1{i } 21.12 16.07 12.48 13.36 20.06 2.84(6.20) (1.88) (1.20) (2.29) (4.46) (0.20)

[5.28] [3.32] [2.24] [3.19] [4.29] [2.14]

1{tLR2}.1{i } 32.44 32.86 30.44 25.60 31.67 17.96(3.67) (3.84) (3.46) (5.25) (3.14) (1.40)

[7.88] [7.13] [6.32] [6.29] [6.61] [3.09]

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e a g

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0

.2

.4

.6

.8

1

MarketShares

2004m1 2006m1 2008m1 2010m1Month

GCR starts GCR ends

RFVs >120gCO2/km RFVs

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170

180

190

200

210

AvgEmissions(gCO2/km)

2005 2006 2007 2008 2009Year

RFVs AFVs

Note: RFVs: Regular Fuel Vehicles; AFVs: Alternative Fuel Vehicles

Supply side Emissions : Regular vs. Alt. Fuel Vehicles

170

18

0

190

200

AvgEmis

sions(gCO2/km)

2005 2006 2007 2008 2009Year

RFVs AFVs

Note: RFVs: Regular Fuel Vehicles; AFVs: Alternative Fuel Vehicles

Sales weighted Emissions : Regular vs. Alt. Fuel Vehicles

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0

10000

20000

3

0000

EthanolSales(000cubicmeters

)

0

50000

100000

150000200000

FFVFleet

2005

m1

2006

m1

2007

m1

2008

m1

2009

m1

2010m1

2011m1

Month

FFV fleet Ethanol Sales

Ethanol Sales and FFV Fleet

0

10000

20000

30000

EthanolSales(000

cubicmeters)

3

2

1

0

1

2

pgpe(energy

adjusted)

2005

m1

2006

m1

2007

m1

2008

m1

2009

m1

2010m1

2011m1

Month

Gasoline Price Premium Ethanol Sales

Ethanol Sales and Gasoline Price Premium

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j j e a

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TABLE A1Supply-side Summary Statistics

CO2 Emissions (gCO2/km)

Fuel 2004 2005 2006 2007 2008 2009

Total mean 210.8 210.4 205.6 199.5 198.8 191.3

se(mean) 1.2 1.2 1.2 1.5 1.3 1.2

median 205 205 197 186 188 181

IQ range 175-239 172-239 167-234 159-226 161-225 155-216.5

Total 120g mean 107.1 106.8 113.6 114.4 113.7 114.1

se(mean) 3.1 2.9 0.9 1.1 0.9 0.7

median 114.5 113 116 118 116 118IQ range 90-118 90-116 109-119 109-119 109-119 109-119

Gasoline mean 218.0 218.3 215.4 213.0 212.4 206.0

se(mean) 1.3 1.4 1.4 1.9 1.7 1.7

median 213 211 207 197 199 193

IQ range 184-246 182-249 180-244 170-242 173-238 167-232

Gasoline 120g mean 116.3 115.3 112.1 111.1 112.1 113.1

se(mean) 0.8 0.8 0.9 1.0 0.9 1.0

median 116 116 111 109 109 112

IQ range 113-119 113-116 109-116 109-113 109-116 109-119

Diesel mean 188.8 188.1 183.0 172.2 174.8 168.3

se(mean) 2.1 2.0 1.8 1.8 1.6 1.3

median 185.5 187 174 162 169 160

IQ range 153-215 153-216 154-210 145-189 148-193 146-184Diesel 120g mean 97.1 101.3 114.8 115.8 114.6 115.2

se(mean) 5.2 4.5 1.4 1.4 1.2 1.0

median 90 100 118 119 119 119

IQ range 90-116 90-116 115-119 116-119 114.5-119 112-119

FFV Mean 165.0 185.3 185.4 184.4 194.2 195.1

se(mean) 0.0 6.8 6.8 4.6 3.7 3.1

median 165 172 172 175.5 184.5 191.5

IQ range 165-165 169-179 169-179 169-206 174-213 177-214

FFV 120g No models available

Gasoline/CNG Mean 199.5 198.0 164.4 150.4 147.6 156.9

se(mean) 12.4 12.2 7.9 6.3 9.7 4.5

median 213 215 164 157 155 157

IQ range 150-231 150-228 148-183 136.5-164 138-160 144-167Gasoline/Electric Mean 104.0 104.0 147.8 147.8 161.8 171.3

se(mean) . . 23.9 23.9 23.3 21.3

median 104 104 147.5 147.5 185 188.5

IQ range 104-104 104-104 106.5-189 106.5-189 109-192 109-219

Note: This table reports sample statistics of the distribution of engine CO2 emissions (measured in gCO2/km) disaggregated by fuel segment. For a given

year, a model is a combination of brand-model-fuel. Sample statistics reported are mean emission levels and their standard errors, median emission levels

and the interquartile range of emissions.