Operations Research, Systems Engineering and Industrial Engineering Commons^™

Impacts Of The Heterogeneity In Consumer Valuation Of Fuel Economy On Corporate Average Fuel Economy Standards Compliance, Nawei Liu

Masters Theses

This study investigated potential impacts of the heterogeneity in consumer valuation of fuel economy on the compliance with fuel economy standards with two analytical approaches. One approach is to provide theoretical analysis of the heterogeneity impacts on the market acceptance of high-efficiency vehicles. The other approach utilizes a consumer choice based simulation method to analyze the heterogeneity impacts on the compliance with the Corporate Average Fuel Economy (CAFE) Standards for the entire light duty vehicle fleet in the U.S. Our findings suggest two possible conditions which are defined based on relative acceptance of high-efficiency vehicles in the market, and they …