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DOE OSTI · 1136643

Consumer Vehicle Choice Model Documentation

Liu, Changzheng·Greene, David L
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Abstract

In response to the Fuel Economy and Greenhouse Gas (GHG) emissions standards, automobile manufacturers will need to adopt new technologies to improve the fuel economy of their vehicles and to reduce the overall GHG emissions of their fleets. The U.S. Environmental Protection Agency (EPA) has developed the Optimization Model for reducing GHGs from Automobiles (OMEGA) to estimate the costs and benefits of meeting GHG emission standards through different technology packages. However, the model does not simulate the impact that increased technology costs will have on vehicle sales or on consumer surplus. As the model documentation states, “While OMEGA incorporates functions which generally minimize the cost of meeting a specified carbon dioxide (CO2) target, it is not an economic simulation model which adjusts vehicle sales in response to the cost of the technology added to each vehicle.” Changes in the mix of vehicles sold, caused by the costs and benefits of added fuel economy technologies, could make it easier or more difficult for manufacturers to meet fuel economy and emissions standards, and impacts on consumer surplus could raise the costs or augment the benefits of the standards. Because the OMEGA model does not presently estimate such impacts, the EPA is investigating the feasibility of developing an adjunct to the OMEGA model to make such estimates. This project is an effort to develop and test a candidate model. The project statement of work spells out the key functional requirements for the new model.

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Liu, Changzheng, Greene, David L. 2012-08-01. Consumer Vehicle Choice Model Documentation. https://doi.org/10.2172/1136643

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