The Kyoto protocol, CAFE standards, and gasoline taxes

The Kyoto Protocol mandates that the U.S, reduce emissions of greenhouse ga ses to 93% of their 1990 levels by the period 2008-2012. This paper explore s the possibility of reducing carbon dioxide emissions in the transportatio n sector to 7% below their 1990 level by 2010. This paper examines two poli cies to achieve these reductions Corporate Average Fuel Efficiency standard s and gasoline taxes. The introduction of these policies individually makes the task seem daunting, yet when using the policies jointly the objective is achievable. (JEL Q38, Q48, R48).