Emissions Control and the Regulation of Product Markets: The Case of Automobiles

The paper investigates alternative policies to regulate emissions from polluting product markets, specifically considering the case of the automobiles market. The two policies we consider are: a quota that limits the quantity produced of the polluting model and a more flexible average efficiency standard that requires a minimum energy efficiency across all models produced by a firm, similar to the US Corporate Average Fuel Economy (CAFE) standards. We use a duopoly model of vertical differentiation where firms produce both an economy (i.e., low polluting) version and a luxury (i.e., high polluting) version of a given product. We show that while a quota can raise firm profit over a certain range, CAFE always reduces firm profit relative to the pre-regulation. We also show that while the quota reduces emissions, it is possible that emissions increase under CAFE. The optimal policy choice will depend on the magnitude of unit damages. We show that when unit damages are sufficiently high, the quota policy is more efficient than the average efficiency standard. This suggests that instead of tightening CAFE to limit damages from emissions, policy makers can shift to a quota policy which is both welfare enhancing and more profitable for firms.

Designing Novel Sulphate-based Ceramic Materials as Insertion Host Compounds for Secondary Batteries

Rechargeable batteries have propelled the wireless revolution and automobiles market over the past 25 years. Developing better batteries with improved energy density demands unveiling of new cathode ceramic materials with suitable diffusion channels and open framework structure. In this pursuit of achieving higher energy density, one approach is to realize enhanced redox voltage of insertion of ceramic compounds. This can be accomplished by incorporating highly electronegative anions in the cathode ceramics. Building on this idea, recently various sulphate- based compounds have been reported as high voltage cathode materials. The current article highlights the use of sulphate (SO4) based cathodes to realize the highest ever Fe3+/Fe2+ redox potentials in Li-ion batteries (LiFeSO4F fluorosulphate: 3.9V vs Li/Li+) and Na-ion batteries (Na2Fe2(SO4)(3) polysulphate: 3.8V vs Na/Na+). These sulphate-based cathode ceramic compounds pave way for newer avenues to design better batteries for future applications.

An analysis of the automobile market: modeling of the long-run determinants of the demand for automobiles. Volume III: appendices to the Wharton E.F.A. Automobile Demand Model. Final report.

Transportation Department, Washington, D.C.

An analysis of the automobile market: modeling of the long-run determinants of the demand for automobiles. Volume II: simulation analysis using the Wharton E.F.A. Automobile Demand Model. Final report.

Transportation Department, Washington, D.C.

An analysis of the automobile market: modeling of the long-run determinants of the demand for automobiles. Volume I: the Wharton E.F.A. Automobile Demand Model. Final report.

Transportation Department, Washington, D.C.

Voluntary export restraints between Britain and Japan: the case of the UK car market (1971–2002)

The rise in international markets of new, productive Japanese car manufacturers provoked intense world competition, which created serious doubts about the economic sustainability of an industry mostly dominated until the 1970s by European and North-American multinational companies. Ultimately, this crisis provoked a deep transformation of the industry, with consequences that had a permanent impact on European companies in the sector. American and later European manufacturers were successful in lobbying governments to provide protection. Using a rich source of data from the UK, I show that the ‘new trade policy’, voluntary export restraint (VER), placed on Japanese exports of new cars from 1977 to December 1999, was binding. This case study illustrates the strategies used by Japanese manufacturers to gain access to the European market through the UK market via strategic alliances and later through transplant production, against which continental European nation states were unable to fully insulate themselves. It is also shown that the policy had a profound effect on the nature of Japanese products, as Japanese firms responded to the quantity restraints by radically altering the product characteristics of their automobiles and shifting towards larger autos and new goods, to maximise their profits subject to the binding constraint.

Aligning sustainability and corporate strategies: the case of hybrid-electric vehicles and Fiat-Chrysler Automobiles

Este estudo analisa a integração da sustentabilidade ambiental na estratégia das empresas no contexto da indústria automobilística. A implementação de estratégias de sustentabilidade e o desenvolvimento de veículos híbrido-elétricos são investigados com referência ao caso de um ator principal na indústria. Entre as aplicações de mobilidade eléctrica, que irá aumentar a presença no mercado nos próximos anos devido às regulamentações rigorosas e as preferências dos clientes, a pesquisa está focada em veículos híbrido-elétricos. As estratégias de sustentabilidade das grandes fabricantes de automóveis e as implicações subsequentes em termos de desenvolvimento de produtos, com uma atenção especial aos veículos elétricos híbridos, foram analisados através de dados secundários. Além disso, os dados primários foram coletados sobre a estratégia de sustentabilidade de um ator importante na indústria e usados para realizar um estudo de caso. A análise incidiu sobre os fatores críticos e os aspectos que têm impacto sobre as estratégias de sustentabilidade, que visam reduzir o impacto ambiental da indústria automobilística, e sobre o desenvolvimento de veículos híbridos. A análise dos dados mostrou que a Fiat-Chrysler Automobiles (FCA) teve uma ênfase menor na mobilidade eléctrica em termos de relatórios de sustentabilidade. A conclusão apresenta uma avaliação da estratégia corporativa da FCA, em termos de sustentabilidade ambiental, e apresenta um quadro para o desenvolvimento de veículos híbridos com quatro abordagens diferentes que têm impacto sobre a estratégia de sustentabilidade de uma montadora.

Index of the relative importance of fuel efficiency (IFE) in the motor vehicle market. Final report.

National Highway Traffic Safety Administration, Office of Research and Development, Washington, D.C.

Market analysis and consumer impacts source document. Part II: review of motor vehicle market and consumer expenditures on motor vehicle transportation. Final report.

National Highway Traffic Safety Administration, Office of Research and Development, Washington, D.C.

Changes in motor vehicle buyer attitudes and market behavior. Final report.

National Highway Traffic Safety Administration, Office of Research and Development, Washington, D.C.

Gray market vehicle program: extension warranted, but improvements in vehicle identification are needed.

Mode of access: Internet.

Study of automobile market dynamics. Volume I: description. Final report.

Transportation Systems Center, Cambridge, Mass.

Study of automobile market dynamics. Volume II: analysis. Final report.

Transportation Systems Center, Cambridge, Mass.