Tuesday, May 26, 2009

Stavins on CAFE standards vs. incentives

Robert Stavins discusses the new CAFE standards and the relative merits of standards vs. incentives at The Energy Collective.

Hat tip: env-econ.net


Kendyll Goeman said...

Stavin’s extensive credentials support his research, facts, and hypotheses. I think that this article, like the Krugman article, is interesting because it points out the flaws of the CAFÉ standards. The CAFÉ standards are only “one small step along the path to meaningful reductions in greenhouse gas emissions.” Could the harms of the regulations out-way the benefits? The increased car prices will in fact urge people to keep their older, less fuel efficient cars on the road. If people aren’t purchasing new cars, what will happen to the already deteriorating automobile industry? Stavin’s Cap and Trade system seems to be a “larger step” to meaningful reductions, but will society be wholeheartedly acceptant of higher gasoline prices?

Anonymous said...

James Marshall said...
This is another example of how the "red tape" of government policies creates inefficiencies when major issue need to be dealt with productively. Why shouldn't all the methods in the article be used? Isn't cooperation and communication the key to "Change?" Furthermore, if the markets and government were proactive in the sense of preventive maintenance, then car companies would have seen that they needed to offer a more competitive product, especially if your competitors are exceeding your standards.