June 20, 2010

Climate Change, Total Factor Productivity, and the Tanzanian Economy: A Computable General Equilibrium Analysis

by Mintewab Bezabih, Muyeye Chambwera and Jesper Stage

- This paper analyzes the economic impacts of climate change-induced adjustments on the performance of the Tanzanian economy, using a countrywide CGE (computable general equilibrium) model. Effect of overall climate change on agricultural productivity is projected to be relatively limited until approximately 2030 and become worse thereafter. Our simulation results indicate that, despite the projected reduction in agricultural productivity, the negative impacts can potentially be quite limited.

Mintewab, B., M. Chambwera and J. Stage (2010). "Climate Change, Total Factor Productivity, and the Tanzanian Economy: A Computable General Equilibrium Analysis." RFF Discussion Paper EfD 10-14, Jun 2010.

Price Discovery in Emissions Permit Auctions

by Dallas Burtraw, Jacob K. Goeree, Charles A. Holt, Erica C. Myers, Karen L. Palmer and William Shobe

- Auctions are increasingly being used to allocate emissions allowances for cap and trade and common-pool resource management programs. This paper reports a laboratory experiment in which half of the bidders experienced unannounced increases in their willingness to pay for permits. The focus is on the extent to which the predicted price increase due to the demand shift is reflected in sales prices under alternative auction formats.

Burtraw, D., J.K. Goeree, C.A. Holt,E.C. Myers, K.L. Palmer and W. Shobe (2010). "Price Discovery in Emissions Permit Auctions." Available at SSRN, Jun 2010.

The Market Microstructure of the European Climate Exchange

by Bruce Mizrach and Yoichi Otsubo

- This paper analyzes the market microstructure of the European Climate Exchange, the largest EU ETS trading venue. The ECX captures 2/3 of the screen traded market in EUA and more than 90% in CER. Trading volumes are active, with EUA volume doubling in 2009. Both Granger-Gonzalo and Hasbrouck information shares imply that approximately 90% of price discovery is taking place in the ECX futures market. We find imbalances in the order book help predict returns for up to three days.

Mizrach, B. and Y. Otsubo (2010). "The Market Microstructure of the European Climate Exchange." Available at SSRN, Jun 2010.

Energy Consumption and Economic Growth - New Insights into the Cointegration Relationship

von Ansgar Belke, Christian Dreger und Frauke de Haan

- This paper examines the long-run relationship between energy consumption and real GDP, including energy prices, for 25 OECD countries from 1981 to 2007. The distinction between common factors and idiosyncratic components using principal component analysis allows to distinguish between developments on an international and a national level as drivers of the long-run relationship.

von Ansgar, B., C. Dreger and F. de Haan (2010). "Energy Consumption and Economic Growth - New Insights into the Cointegration Relationship." Ruhr Economic Papers No. 190, Jun 2010.

Risk and Aversion in the Integrated Assessment of Climate Change

by Benjamin Crost and Christian P. Traeger

- We analyze the impact of uncertainty on optimal mitigation policies derived from the integrated assessment of climate change. For this purpose, we construct a close relative of the DICE model in a recursive dynamic programming framework. First, our framework can capture persistent uncertainty and we compare it to the simpler and more frequently employed analysis of ex-ante uncertainty. Second, our framework makes it possible to disentangle effects deriving from risk, from risk aversion, and from a decision maker’s aversion to intertemporal substitution.

Crost, B. and C.P. Traeger (2010). "Risk and Aversion in the Integrated Assessment of Climate Change." Department of Agricultural and Resource Economics, UCB, UC Berkeley, Jun 2010.

Model Predictive Control, the Economy and the Issue of Global Warming

by Thierry Brechet, Carmen Camacho and Vladimir M. Veliov

- We employ the integrated assessment Nordhaus DICE-2007 model. The main novelty is that several reasonable types of behavior (policy) of the economic agents, which may be non-optimal from the point of view of the global performance but are reasonable form an individual point of view and exist in reality, are strictly defined and analyzed.

Brechet, T., C. Camacho and V.M. Veliov (2010). "Model Predictive Control, the Economy and the Issue of Global Warming." Core Discussion Paper No. 2010/16, May 2010 May 2010.

Coalition Formation Among Farsighted Agents

by P. Jean-Jacques Herings, Ana Mauleon and Vincent Vannetelbosch

- We provide a characterization of unique farsightedly stable sets of coalition structures and we study the relationship between farsighted stability and other concepts such as the largest consistent set and the von Neumann-Morgenstern farsightedly stable set. Finally, we illustrate our results by means of coalition formation games with positive spillovers.

Herings, P. J-J, A. Mauleon and V. Vannetelbosch (2010). "Coalition Formation Among Farsighted Agents." Core Discussion Paper No. 2010/17, May 2010.

Would Hotelling Kill the Electric Car?

by Ujjayant Chakravorty, Andrew Leach and Michel Moreaux

- In this paper, we show that the potential for endogenous technological change in alternative energy sources may alter the behaviour of resource-owning firms. When technological progress in an alternative energy source can occur through learning-by-doing, resource owners face competing incentives to extract rents from the resource and to prevent expansion of the new technology.

Chakravorty, U., A. Leach and M. Moreaux (2010). "Would Hotelling Kill the Electric Car?" LERNA Working Paper, No. 10.08.314, Apr 2010.

Taxes, Permits and Costly Policy Response to Technological Change

by Jessica Coria and Magnus Hennlock

- In this paper we analyze the effects of the choice of price (taxes) versus quantity (tradable permits) instruments on the policy response to technological change. We show that if policy responses incur transactional and political adjustment costs, environmental targets are less likely to be adjusted under tradable permits than under emission taxes. This implies that the total level of abatement over time might remain unchanged under tradable permits while it will increase under emission taxes.

Coria, J. and M. Hennlock (2010). "Taxes, Permits and Costly Policy Response to Technological Change." University of Gothenburg, School of Business, Economics and Law, Working Papers in Economics No. 442, Apr 2010.

June 13, 2010

The Return of Dr Strangelove

by Clive Hamilton

- In Stanley Kubrick’s 1964 film, Dr Strangelove was the unhinged US general who risked nuclear apocalypse by ordering a first strike against the Soviet Union. The character was modelled on Dr Edward Teller, "the father of the hydrogen bomb". In the 1990s, Teller and his colleague at the Lawrence Livermore National Laboratory, Lowell Wood (a weapons researcher nicknamed "Dr Evil"), were among the first to advocate responding to global warming by transforming the chemical composition of the Earth’s atmosphere. Taking control of the climate by injecting sulphur particles into the upper atmosphere sounds like science fiction, but there is now a powerful alliance of scientists and venture capitalists backing the idea.

Hamilton, C. (2010). "The Return of Dr Stangelove." Jun 2010.

International Carbon Emissions Trading and Strategic Incentives to Subsidize Green Energy

by Thomas Eichner and Rüdiger Pethig

- This paper examines strategic incentives to subsidize green energy in a group of countries that operates an international carbon emissions trading scheme. Welfare-maximizing national governments have the option to discriminate against energy from fossil fuels by subsidizing green energy, although in our model green energy promotion is not efficiency enhancing. The cases of small and large countries turn out to exhibit significantly differences.

Eichner, T. and R. Pethig (2010). "International Carbon Emissions Trading and Strategic Incentives to Subsidize Green Energy." CESifo Working Paper No. 3083, Jun 2010.

Distributional Implications of Alternative U.S. Greenhouse Gas Control Measures

by Sebastian Rausch, Gilbert E. Metcalf, John M. Reilly and Sergey Paltsev

- We analyze the distributional and efficiency impacts of different allowance allocation schemes for a national cap and trade system using the USREP model, a new recursive dynamic computable general equilibrium model of the U.S. economy. The USREP model tracks nine different income groups and twelve different geographic regions within the United States. Recently proposed legislation include the Waxman-Markey House bill, the similar Kerry-Boxer bill in the Senate that has been replaced by a Kerry-Lieberman draft bill, and the Cantwell-Collins Senate bill that takes a different approach to revenue allocation.

Rausch, S., G.E. Metcalf, J.M. Reilly and S. Paltsev (2010). "Distributional Implications of Alternative U.S. Greenhouse Gas Control Measures." Joint Program Report Series, Report 185, Jun 2010.

Coding Error or Statistical Embellishment? The Political Economy of Reporting Climate Aid

by Axel Michaelowa and Katharina Michaelowa, CIS Working Paper 56/2010; download at

- In an attempt to win further public support for aid expenditures, aid administrations may have tried to label some of their aid activities as conducive to the mitigation of, or the adaptation to, climate change. In this case, whether a donor reports a project with a climate-related "Rio marker" should depend not only on the actual content of the project, but also on the national voters’ ecological preferences, meteorological extreme events, or the media coverage of international climate policy issues. In our paper we test these hypotheses using project-level aid data and country-level political data for 21 DAC donors from 1995 to 2007.

Michaelowa, A. and K. Michaelowa. "Coding Error or Statistical Embellishment? The Political Economy of Reporting Climate Aid." CIS Working Paper 56/2010, May 2010. Data Appendix

An Estimation Method for the Emission Accounting Table of Global Agricultural Activities

by Tomoko Hasegawa

- This paper describes an estimation method to develop an emission accounting table of global agricultural activities which consists of accounting tables including agricultural commodity flows from production to consumption, GHG emissions and agricultural waste etc.. Material and monetary flows related with agricultural commodities are estimated by using reported information such as production, trade and consumption from published statistics.

Hasegawa, T. (2010). "An Estimation Method for the Emission Accounting Table of Global Agricultural Activities." Interim Report, IR-09-055, May 2010.

Nationally Appropriate Mitigation Actions (NAMAs) in Developing Countries: Challenges and Oppertunities

by Harro van Asselt, Jesper Berseus, Joyeeta Gupta and Constanze Haug

- This report examines the positions of four key developing countries - Brazil, China, India, South Africa - on NAMAs. It focuses on their views on the nature and context of NAMAs; the scope of NAMAs; the linkages between NAMAs and financial, technological, and capacity building support; and on the measuring, reporting and verifying (MRV) of NAMAs. The report concludes that these countries’ positions on NAMAs are largely similar.

Asselt van, H., J. Berseus, J. Gupta and C. Haug (2010). "Nationally Appropriate Mitigation Actions (NAMAs) in Developing Countries: Challenges and Oppertunities." Netherlands Environmental Assessment Agency PBL, Report No. 500102035, Jun 2010.

June 8, 2010

Ambiguity and Climate Policy

by Antony Millner, Simon Dietz and Geoffrey Heal

- We apply static and dynamic versions of the smooth ambiguity model of Klibanoff et al, (2005, 2009) to climate policy. We illustrate via comparative statics the conditions under which an increase in ambiguity aversion increases the optimal level of mitigation in some simple examples. We then extend our analysis to a dynamic setting and adapt the well-known DICE model of the climate-economy system to show that the value of emissions abatement increases as ambiguity aversion increases. We also find that the value of abatement is more sensitive to risk aversion than to ambiguity aversion.

Millner, A., S. Dietz and G. Heal (2010). "Ambiguity and Climate Policy." NBER Working Paper No. 16050, Jun 2010.

State and Trends of the Carbon Market 2010

by Alexandre Kossoy and Philippe Ambrosi

- The State and Trends of the Carbon Market 2010, released by the World Bank at Carbon Expo in Cologne analyzes data from the trading of European Union Allowances (EUAs) and secondary Kyoto offsets under the European Union Emissions Trading Scheme (EU ETS). It also evaluates transactions under the Kyoto markets: Certified Emission Reductions (CERs), Emission Reduction Units (ERUs), and Assigned Amount Units (AAUs), as well as data from voluntary markets.

Kossoy, A. and P. Ambrosi (2010). "State and Trends of the Carbon Market 2010." The World Bank, May 2010.

Towards a More Standardized Approach to Baselines and Additionality Under the CDM

by Daisuke Hayashi, Nicolas Müller, Sven Feige and Axel Michaelowa

- The Clean Development Mechanism (CDM) has been a success in both the number of projects and the amount of emission reductions it has mobilised. On the other hand, an increasing number of stakeholders are calling for a reform of the CDM for further improvement of the mechanism. Of particular concern is the cumbersome procedure of baseline setting and additionality testing. The baseline defines the emission level that would have existed under a business-as-usual (BAU) scenario, while a project is additional if it would not have happened in the absence of the revenue from sales of Certified Emission Reductions (CERs). In order to operationalise these concepts, complex methodologies and procedures have been introduced to the CDM.

Hayashi, D., N. Müller, S. Feige and A. Michaelowa (2010). "Towards a More Standardized Approach to Baselines and Additionality Under the CDM." Perspectives Climate Change, May 2010.

GHG Targets as Insurance Against Catastrophic Climate Damages

by Martin L. Weitzman

- A critical issue in climate-change economics is the specification of the so-called "damages function" and its interaction with the unknown uncertainty of catastrophic outcomes. This paper asks how much we might be misled by our economic assessment of climate change when we employ a conventional quadratic damages function and/or a thin-tailed probability distribution for extreme temperatures. The paper gives some numerical examples of the indirect value of various GHG concentration targets as insurance against catastrophic climate-change temperatures and damages. These numerical examples suggest that we might be underestimating considerably the welfare losses from uncertainty by using a quadratic damages function and/or a thin-tailed temperature distribution.

Weitzman, M.L. (2010). "GHG Targets as Insurance Against Catastrophic Climate Damages." Harvard University, mimeo, Jun 2010.

Why did Greenhouse Gas Emissions Fall in the EU in 2008?

by the European Environmental Agency

- This paper briefly analyses the major factors that accounted for reduced greenhouse gas emissions in the EU27 between 2007 and 2008. The paper commences with an overview of EU trends, followed by summaries of the contributions of individual Member States, greenhouse gas types and main sectors. It then reviews other explanatory factors such as population, economic output, energy and carbon intensity, and concludes with a brief overview of 2009 emissions from the EU Emissions Trading System.

EEA (2010). "Why did Greenhouse Gas Emissions Fall in the EU in 2008?" EEA analysis in brief, May 2010.

Annual European Union Greenhouse Gas Inventory 1990-2008 and Inventory Report 2010

by the European Environmental Agency

- This report is the annual submission of the greenhouse gas inventory of the European Union to the United Nations Framework Convention on Climate Change and the Kyoto Protocol. It presents greenhouse gas emissions between 1990 and 2008 for EU-27, EU-15, individual Member States and economic sector.

EEA (2010). "Annual European Union Greenhouse Gas Inventory 1990-2008 and Inventory Report 2010." Technical report No 6/2010, May 2010.

Environmental Policy, Education and Growth with Finite Lifetime: the Role of Abatement Technology

by Xavier Pautrel

- This note shows that the assumptions about the abatement technology modify the impact of the environmental taxation (both the size and the "direction") on the long-run growth driven by human capital accumulation à la Lucas (1988), when the source of pollution is private consumption and lifetime is finite. When the human capital’s share in the abatement services production is higher (respectively lower) than in the final output production, a higher environmental tax reduces (resp. increases) the allocation of human capital in production sectors (abatement service and final output) and boostes (resp. decreases) the BGP rate of growth. When abatement services are produced with the final output, the environmental taxation does not influence growth.

Pautrel, X. (2010). "Environmental Policy, Education and Growth with Finite Lifetime: the Role of Abatement Technology." FEEM Note di lavoro No. 2010.070, May 2010.

Agricultural Insurances Based on Meteorological Indices: Realizations, Methods and Research Agenda

by Antoine Leblois and Philippe Quirion

- In this article, we first describe the most advanced projects that have taken place in developing countries using crop insurances based on meteorological indices. We then describe the methodology that has been used to design such projects, in order to choose the meteorological index, the indemnity schedule and the insurance premium. We finally draw an agenda for research in economics on this topic. In particular, more research is needed on implementation issues, on the assessment of benefits, on the way to deal with climate change, on the spatial variability of weather and on the interactions with other hedging methods.

Leblois, A. and P. Quirion (2010). "Agricultural Insurances Based on Meteorological Indices: Realizations, Methods and Research Agenda." FEEM Note di lavoro No. 2010.071, May 2010.

China in the Transition to a Low-Carbon Economy

by ZhongXiang Zhang

- This paper first discusses China’s own efforts towards energy saving and pollutants cutting, the widespread use of renewable energy and participation in clean development mechanism, and puts carbon reductions of China’s unilateral actions into perspective. Given that transition to a low carbon economy cannot take place overnight, the paper then discusses China’s policies on promoting the use of low-carbon energy technologies and nuclear power and efforts to secure stable oil and gas supplies during this transition period.

Zhang, Z. (2010). "China in the Transition to a Low-Carbon Economy." FEEM Note di lavoro No. 2010.076, May 2010.

Biofuels Policy in Europe Under the Directive 2003/30: An Analysis of Goals, Hindrances, Instruments and Effects

by Augusto Ninni and Pietro Lanzini

- The paper deals deeply with the biofuel experience in Europe, providing a general analysis of the 2003/30 Directive. It includes an evaluation of the difficulties met in satisfying the requested targets, an assessment of the MSs policies to support biofuels, and a discussion about the main features of the (failed) birth of a new industry.

Ninni, A. and P. Lanzini (2010). "Biofuels Policy in Europe Under the Directive 2003/30: An Analysis of Goals, Hindrances, Instruments and Effects." IEFE Working Paper No. 34, May 2010.

June 6, 2010

Toward a Sunny Future? Global Integration in the Solar Pv Industry

by Jacob F. Kirkegaard, Thilo Hanemann, Lutz Weischer and Matt Miller

- This paper analyzes the global integration of the solar photovoltaic (PV) sector and looks in detail at the industry’s recent growth patterns, industry cost structure, trade and investment patterns, government support policies and employment generation potential. In order to further stimulate both further growth of the solar industry and local job creation without constructing new trade and investment barriers, we recommend three policy actions.

Kirkegaard, J.F., T. Hanemann, L. Weischer and M. Miller (2010). "Toward a Sunny Future? Global Integration in the Solar Pv Industry." Peterson Institute for International Economics Working Paper No. 10-6, May 2010.

Comparing Climate Commitments: A Model-Based Analysis of the Copenhagen Accord

by Warwick J. McKibbin, Adele Morris and Peter J. Wilcoxen

- This paper provides such a comparison by analyzing the Copenhagen targets using the GCubed model of the global economy. We begin by formulating a no-policy baseline projection for major world economies. We then model the Copenhagen Accord’s economy-wide commitments, with a focus on fossil-fuel-related CO2. We show how different formulations make the same targets appear quite different in stringency, and we estimate and compare the likely economic and environmental performance of major emitters’ Copenhagen targets. The analysis also explores the spillover effects of emission reductions efforts on countries that did not adopt economy-wide emissions targets at Copenhagen.

McKibbin, W.J., A. Morris and P.J. Wilcoxen (2010). "Comparing Climate Commitments: A Model-Based Analysis of the Copenhagen Accord." Discussion Paper 10-35, Harvard Project on International Climate Agreements, Belfer Center for Science and International Affairs, Harvard Kennedy School, Jun 2010.

The Effects of Domestic Climate Change Measures on International Competitiveness

by Hiau Looi Kee, Hong Ma and Muthukumara Mani

- This paper examines the implications of climate change policies such as carbon tax and energy efficiency standards on competitiveness across industries, as well as issues related to leakage, if any, of carbon-intensive industries to developing countries. Although competitiveness issues have been much debated in the context of carbon taxation policies, the study finds no evidence that the energy intensive industries' competitiveness is affected by carbon taxes. In fact, the analysis suggests that exports of most energy-intensive industries increase when a carbon tax is imposed by the exporting countries, or by both importing and exporting countries.

Kee, H.L., H. Ma and M. Mani (2010). "The Effects of Domestic Climate Change Measures on International Competitiveness." World Bank Policy Research working paper No. WPS 5309, May 2010.

Are Models Suitable for Determining ILUC Factors?

by Anne Gerdien Prins, Elke Stehfest, Koen Overmars and Jan Ros

- Biofuels have the potential to mitigate greenhouse gas emissions. Besides direct emissions from the production chain emissions from indirect land use change (ILUC) can reduce this potential. Therefore, the possibility to include an ILUC-emission factor in the EU sustainability criteria is investigated. Integral global models can be used to explore these emissions. However, the complexity of the system and its related assumptions introduce significant differences in the results of different models. Moreover, the ILUC-emission of biofuels vary in time due to a changing context.

Prins, A.G, E. Stehfest, K.P. Overmars and J.P.M. Ros (2010). "Are Models Suitable for Determining ILUC Factors?" Netherland Environmental Assessment Agency (PBL), Report No. 500143006, May 2010.

Evaluation of the Indirect Effects of Biofuel Production on Biodiversity: Assessment Across Spatial and Temporal Scales

by Mark van Oorschot, Jan Ros and Jos Notenboom

- The objective of using biofuels is to reduce greenhouse gas emissions. In the long term, this can reduce the negative impact of climate change on biodiversity. Several biofuels are grown in existing agricultural areas. This will indirectly lead to loss of natural area on the short term through transfer of current production to other world regions. Assessing the balance between short-term losses and long-term gains for biodiversity shows that it may take decades to centuries before losses are compensated for by long-term gains.

Oorschot, M.M.P., J.P.M. Ros and J.G.M. Notenboom (2010). "Evaluation of the Indirect Effects of Biofuel Production on Biodiversity: Assessment Across Spatial and Temporal Scales." Netherland Environmental Assessment Agency (PBL), Report No. 500143007, May 2010.

Evaluation of the Copenhagen Accord: Chances and Risks for the 2°C Climate Goal

by MGJ den Elzen MGJ et al

- The Copenhagen Accord has proven beneficial to the efforts of achieving the target of limiting global warming to two degrees Celsius. Since the climate conference was held, countries have pledged to reduce their greenhouse gas emissions. These pledges could realise up to 70 per cent of the greenhouse gas reduction that is needed. However, the risk of the actual reductions being less, is substantial. Thus is the conclusion of the report Evaluation of the Copenhagen Accord: Chances and risks for the 2 °C climate goal, by the Netherlands Environmental Assessment Agency (PBL).

den Elzen, M.G.J., A.F. Hof, M.A. Mendoza Beltran, M. Roelfsema, B.J. van Ruijven, J. van Vliet, D.P. van Vuuren, N. Höhne, S. Moltmann (2010). "Evaluation of the Copenhagen Accord: Chances and Risks for the 2°C Climate Goal." Netherland Environmental Assessment Agency (PBL), Report No. 500114018, May 2010.

Economic Growth, the Recession and Greenhouse Gas Emissions

by Alex Bowen and Sophia Parker

- This paper looks at how economic growth, the recession or other factors influence greenhouse gas emissions.

Bowen, A. and S. Parker (2010). "Economic Growth, the Recession and Greenhouse Gas Emissions." Climate Strategies, May 2010.

Forecasting CER Supply up to 2020

by Keisuke Iyadomi

- This paper analyses offset supply in the light of the Copenhagen agreement and looks at several hypothetical scenarios that may be in place before or after an international agreement is concluded.

Iyadomi, K. (2010). "Forecasting CER Supply up to 2020." Climate Strategies, May 2010.

Interpreting Emission Pledges: the Need for a Common Accounting Framework

by Antonia Baker

- This paper aims to clarify the meaning of current national emission pledges, in ways that can facilitate efforts to understand their implications and aid comparison. It builds upon the paper Comparability of effort by Annex I Parties: an overview of issues. That paper outlined the difficulty of establishing ‘comparability’ among countries’ pledges and introduced a new approach based upon trajectories to 2050; it also underlined the difficulty of understanding some of the current pledges. This paper provides a more detailed analysis of what has been pledged and it suggests options for improving transparency in understanding the implications.

Baker, A. (2010). "Interpreting Emission Pledges: the Need for a Common Accounting Framework." Climate Strategies, May 2010.

Tackling Leakage in a World of Unequal Carbon Prices

by Susanne Droege and Simone Cooper

- This study was commissioned by the Greens/EFA Group in European Parliament to analyse the impact of carbon pricing on specific subsectors of the European economy and suggest suitable remedial policies when there is a risk of leakage. The study shows that the carbon leakage challenge is not resolved by the approach taken so far under the revised EU Directive. From the in-depths analyses undertaken also by other studies, it becomes clear that a policy response should differ along sector characteristics.

Droege, S. and S. Cooper (2010). "Tackling Leakage in a World of Unequal Carbon Prices." Climate Strategies, May 2010.

Consumer Learning and Hybrid Vehicle Adoption

by Garth Heutel and Erich Muehlegger

- We study the diffusion of hybrid vehicles among consumers. Using data on sales of 11 different models over seven years, we identify the effect of the penetration rate -total cumulative hybrid sales per capita- on new hybrid purchases. The penetration rate significantly affects new purchases, and the effect differs by hybrid model. In particular, we find a positive diffusion effect from the Toyota Prius and a negative diffusion effect from the Honda Insight, with elasticities of 0.23 to 0.85 for the Prius and -0.08 to -0.32 for the Insight.

Heutel, G. and E. Muehlegger. "Consumer Learning and Hybrid Vehicle Adoption." HKS Faculty Research Working Paper Series RWP10-013, April 2010.