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AbstractThe likely effect of an unexpectedly large increase in the
period 1990 to 2010 in retail fuel price on the average fuel efficiency of light-duty
vehicles is shown here. Light-duty vehicles include all cars and light
trucks. Because vehicles consume a substantial part of energy, average vehicle
fuel efficiency is an important indicator for greenhouse gas emission and climate
change policy making. The lower the fuel efficiency, the higher the emission
per vehicle, and, consequently, the greater its contribution to greenhouse gas
production. Gasoline cost is the major vehicle operating cost. An increase in
gasoline price would, to some extent, cause users to choose more fuel-efficient
vehicles in order to reduce vehicle-operating cost. The Prairie Provinces would
have the most sensitive response in fuel efficiency improvement to retail fuel
price.
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