Inducing the Development and Adoption of Socially Efficient Automotive Technology
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1978-02-01
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By Boyd, Hayden
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Abstract:Federal policies for inducing the development and adoption of innovative automobile technology are examined using a welfare economics framework. Socially efficient technology is defined, and criteria are identified for evaluating public policies; these include (a) feasibility and efficacy, (b) mechanism for tradeoffs, (c) information requirements, (d) incentives for information generation, (e) incentives for optimizing technology, and (f) effects on uncertainty. Current and alternative policies are evaluated by the criteria. Policies which place greater reliance on market forces, product information, and fiscal incentives can overcome many of the barriers to innovation which confront performance standards.
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