Fuel Efficiency and Automobile Travel in Germany: Don’t Forget the Rebound Effect!

The improvement of energy efficiency is often asserted to be one of the most promising options to reduce both the usage of energy and associated negative externalities, such as carbon dioxide emissions (CO2). Ever since the creation of the Corporate Average Fuel Economy (CAFE) standards in 1975, this assertion has been a mainstay of energy policy in the United States. In recent years, it has also found increasing currency in Europe, as attested to by the voluntary agreement negotiated in 1999 between the European Commission (EC) and the European Automobile Manufacturers Association, stipulating the reduction of average emissions to a target level of 140 g CO2/km by 2008. The EC is additionally considering legislation that would set a target of 120 g CO2/km by 2012.

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