Abstract

ELIZONDO, Alejandra  and  HERNANDEZ AMEZCUA, Thalia. Regulating CO₂ Emissions for Light Vehicles in Mexico. Gest. polít. pública [online]. 2018, vol.27, n.2, pp.571-594. ISSN 1405-1079.

We analyze the regulation for carbon dioxide emissions and their equivalence in terms of fuel efficiency standards applicable to light vehicles in Mexico, as a policy instrument with flexibility to maximize welfare while minimizing social costs. According to the economic theory, a Pigovian tax is the instrument that best internalizes negative externalities. However, its application in Mexico has proven lack of political feasibility and has faced difficulties in its implementation. Following the principles of modern regulation in developed countries, Mexico issued a regulation in 2013 with efficiency standards for automobiles, characterized by permit transfers among industries and a credit system that promote the adoption of more efficient technologies.

Keywords : environmental regulation; transport; externalitites; efficiency standards; fuel economy.