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Chicago Fed Letter, No. 357, 2016
The VW Scandal and Evolving Emissions Regulations

In September 2015, Volkswagen (VW) admitted to having programmed nearly 11 million of its diesel vehicles to cheat on tailpipe emissions tests. To put VW’s emissions rigging into a broader context, the authors review the different approaches that the U.S. and Europe have historically taken in regulating automotive emissions and fuel economy. Moreover, they discuss the scandal’s implications for regulatory changes in both regions.



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