International competitiveness and the auto industry: What's the role of motor vehicle emission standards?

This paper reviews the political science, regulatory, and economics literature to illuminate the international competitiveness impacts of motor vehicle emission standards. The primary question the authors consider is whether motor vehicle emission standards adopted in one market will create a future competitive advantage for domestic manufacturers when policy diffusion leads other markets to adopt similar emission standards at a later date. Related questions they consider include the impact of vehicle emission standards on technology innovation, “learning by doing,” and economies of scale; the diffusion of emission standards to other markets; and the impact on the location of research and development, assembly plants, and component supplier production facilities.