The purpose of the project is to provide Mexico's National Institute of Ecology (INE) with a comprehensive economic analysis of its proposed cap and trade scheme for the Mexican Automobile Industry.   Cap and trade forms the cornerstone of a regulation that INE is currently developing to promote energy efficiency in the private market for gas and diesel light vehicles.  Reducing fuel use in this sector is extremely important because private transport represents approximately 16 percent of total national greenhouse gas emissions.  The Center for Sustainable Transport of Mexico's (CTS-Mexico) economic analysis of INE's cap and trade scheme will help INE to polish final details of and provide critical supporting arguments for its proposal for energy efficiency regulation before other federal actors.

Outputs

• Case study on the Corporate Average Fuel Economy Standards
• A Theorectical Framework for the Cap and Trade Market Design Structure