To LDT or Not to LDT: Assessment of Principal Impacts of Light-Duty Trucks
Abstract
Light-duty truck classification allows manufacturers and owners to avoid a host of passenger-car regulations, including gas-guzzler taxes, safety standards, and more stringent emissions and fuel-economy standards. The distinct policies that govern light-duty trucks and passenger cars are described; the emissions, safety, and fuel economy differences that have resulted are evaluated; and the household use differences across such vehicles are investigated. The result is that when the average new pickup truck or sport-utility vehicle is compared with a passenger car, there appears to be an implicit subsidy of roughly $4,400 favoring the light-duty truck. When minivans are compared with passenger cars, this subsidy is estimated to be around $2,800. With more equitable vehicle regulations, it is likely that prices would more accurately reflect the true cost differences resulting from the use of these vehicles, causing light-duty trucks to lose some of their popularity or clean up their act.
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Article first published: January 2000
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