Do fuel-efficient cars make us drive more?

The research investigates the 'rebound effect'—the theory that lower per-mile costs from fuel-efficient cars encourage more driving—by analyzing household data from Texas during the 2009 Cash for Clunkers programme. The study found that while the programme successfully induced the purchase of more fuel-efficient vehicles, these cars were also smaller, cheaper, and less powerful. Consequently, the authors found no evidence that households increased their annual vehicle miles travelled, suggesting that the reduced desirability of downsized vehicles offsets the lower cost of driving.

• The Cash for Clunkers stimulus programme, which provided rebates of $3,500 or $4,500 for trading in vehicles with 18 miles per gallon (MPG) or less, successfully incentivized households to purchase more fuel-efficient vehicles.
• Increased fuel efficiency in the vehicles purchased through the programme was associated with a decrease in other desirable vehicle characteristics, specifically resulting in cars that were less expensive, smaller, and less powerful.
• There was no evidence of a 'rebound effect' in Texas; households that acquired more fuel-efficient, downsized vehicles did not increase their annual vehicle miles travelled (VMT) in the year following the purchase.
• The study suggests that fuel-efficiency regulations, such as the Corporate Average Fuel Economy (CAFE) standards, may be more effective than previously estimated because they change vehicle characteristics in ways that reduce the underlying desire to drive, unlike simple changes in fuel prices.

APA

Hoekstra, M., Meer, J., Puller, S., & West, J. (2015). Do fuel-efficient cars make us drive more? World Economic Forum. https://www.weforum.org/stories/nature-and-biodiversity/do-fuel-efficient-cars-make-us-drive-more/

Chicago

Hoekstra, Mark, Jonathan Meer, Steve Puller, and Jeremy West. Do fuel-efficient cars make us drive more? World Economic Forum, 2015. https://www.weforum.org/stories/nature-and-biodiversity/do-fuel-efficient-cars-make-us-drive-more/.

Wikipedia

{{cite report |last1=Hoekstra |first1=Mark |last2=Meer |first2=Jonathan |last3=Puller |first3=Steve |last4=West |first4=Jeremy |title=Do fuel-efficient cars make us drive more? |publisher=World Economic Forum |date=16 July 2015 |url=https://www.weforum.org/stories/nature-and-biodiversity/do-fuel-efficient-cars-make-us-drive-more/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{hoekstra2015fuelefficient, author = {Hoekstra, Mark and Meer, Jonathan and Puller, Steve and West, Jeremy}, title = {{Do fuel-efficient cars make us drive more?}}, institution = {World Economic Forum}, year = {2015}, month = jul, url = {https://www.weforum.org/stories/nature-and-biodiversity/do-fuel-efficient-cars-make-us-drive-more/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }