Environmental economic /fuel efficiency in vehicles

Figure 1 is the infamous (to energy economists) McKinsey Curve. This curve shows the net cost of abatement for a variety of possible abatement technologies. The negative bars indicate that this abatement technology is privately profitable (i.e., has negative net costs). Economists are usually skeptical of claims of net negative costs, since this suggests that this is "money left on the table". Choose one of the negative bars from the curve and make an evidence-supported case for the existence or non- existence of an energy efficiency "gap" for this area. It will be helpful to read Allcott and Greenstone (2012) for an overview of energy efficiency gaps. Cite at least two other scholarly articles to support your case and answer in 1-2 paragraphs.