English Blogactiv Posts - EU Blog Platform

Passenger cars account for up to 10 per cent of global C02 emissions. In view of the rapidly growing global stock of motor cars, especially in Asia, it is urgent to tackle this source of climate change.
There are two complementary ways of addressing the issue: through gasoline taxation and fuel consumption/emission standards.
The USA has traditionally relied on standards. Starting in the 1970s it has imposed mandatory C02 emission standards for cars and light-weight vehicles. These have forced the American car industry to change the design of its engines/cars and led to an increase in fuel efficiency of the American car fleet by about 70 per cent during the last 40 years, thereby narrowing the once huge gap with European cars.
In contrast, Europe has traditionally favoured taxation as the main policy instrument. Very high excise taxes on gasoline have induced manufacturers to build small cars, consuming only half of US vehicles.
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