Template-type: ReDIF-Paper 1.0 Author-Name: Los, Bart Author-Email: b.los@rug.nl Author-Workplace-Name: Groningen Growth and Development Centre, and University of Groningen Author-Name: Verspagen, Bart Author-Email: b.verspagen@algec.unimaas.nl Author-Workplace-Name: UNU-MERIT, and Maastricht University Title: Localized Innovation, Localized Diffusion and the Environment: An Analysis of CO2 Emission Reductions by Passenger Cars, 2000-2007 Abstract: We investigate technological change with regard to CO2 emissions by passenger cars, using a Free Disposal Hull methodology to estimate technological frontiers. We have a sample of cars available in the UK market in the period 2000 – 2007. Our results show that the rates of technological change (frontier movement) and diffusion (distance to frontier at the car brand level) differ substantial between segments of the car market. We conclude that successful policies should be aimed at diffusion of best-practice technology, and take account of the different potential for further progress between different segments of the market (e.g., diesel and gasoline engines, and small vs. large engines). Classification-JEL: Q55, O31, O33 Keywords: CO2 emissions by cars, technological change, diffusion of innovations Series: UNU-MERIT Working Papers Creation-Date: 2008 Number: 2008-037 File-URL: https://unu-merit.nl/publications/wppdf/2008/wp2008-037.pdf File-Format: application/pdf File-Size: 275 Kb Handle: RePEc:unm:unumer:2008037