Quote:
Originally Posted by Derwood
True, though the presidents who have reduced fuel efficiency standards have done a lot of damage
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Do CAFE standards actually work? Are CAFE standards the best way to improve average fuel economy?
I suspect the answer to both questions is no.
First at any given gas price better average gas mileage encourages people to drive more relative to alternatives to driving. Benefit negated.
Second, if the goal is truly to drive consumers to actually wanting more efficient vehicles, as evidenced by car sales data every time there is a spike in gas prices, is to actually increase the price of gas. I generally would not support increasing gas taxes for this sole purpose, but it is clear that simply increasing the federal tax on gas is the best way to improve fuel efficiency and reduce gas consumption.
Third, CAFE standards increase the price of new vehicles and this encourages people to hold on to older less fuel efficient vehicles longer.
Forth, CAFE standards gave car companies incentives to consolidate to achieve the goals. In addition, since trucks are excluded and some SUV's, there was an material increase in the sales of vehicles in this category. Corporate profit margins benefited, not the consumer.