Jim Sallee's EI blog about his important new paper w Koichiro Ito and Andrew Smith showing large international spillovers of fuel economy standards. Japan car makers redesigned cars for their own standards and ended up saving US buyers a lot of gasoline.
energyathaas.wordpress.com/2026/05/04/m...
energyathaas.wordpress.com
A new EI working paper shows that a fuel-economy incentive in Japan created spillover benefits in the US market. Japanese cars affected by the policy improved MPG in the US, leading to greater gree…
