Gillingham, Kenneth
[VerfasserIn]
;
Houde, Sébastien
[Sonstige Person, Familie und Körperschaft];
van Benthem, Arthur
[Sonstige Person, Familie und Körperschaft]
Erschienen in:CER-ETH – Center of Economic Research at ETH Zurich Working Paper 19/321
Umfang:
1 Online-Ressource (59 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.3389832
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 7, 2019 erstellt
Beschreibung:
A central question in the analysis of fuel-economy policy is whether consumers are myopic with regards to future fuel costs. We provide the first evidence on consumer valuation of fuel economy from a natural experiment. We examine the short-run equilibrium effects of an exogenous restatement of fuel-economy ratings that affected 1.6 million vehicles. Using the implied changes in willingness-to-pay, we find that consumers act myopically: consumers are indifferent between $1 in discounted fuel costs and 15-38 cents in the vehicle purchase price when discounting at 4%. This myopia persists under a wide range of assumptions