THE DYNAMIC COSTS BENEFITS OF TECHNOLOGY-FORCING POLICY NESTED IN A BROADER PERFORMANCE STANDARD: THE CASE OF ZEV CAFÉ

摘要

When a regional technology-forcing policy, such as a state Zero-Emissions Vehicle (ZEV) mandate, isimplemented in the presence of an existing broader technology-neutral environmental performance standard, suchas the federal Corporate Average Fuel Economy (CAFÉ) standards, indirect and complex costs and benefits canoccur. Two types of these effects are policy interaction effects, such as leakage from nested policies (Goulder,Jacobsen, & Van Benthem, 2012; Jenn, Azevedo, & Michalek, 2016), and long-term dynamic effects, such asspillover of cost reductions (Gillingham & Stock, 2018; Linn & McConnell, 2017; Fox, Axsen, & Jaccard, 2017).