by William F. Shughart II, Senior Editor; Arthur R. Wardle, CGO Graduate Research Fellow
Posted October 16, 2018 In Scholar Commentary

The announcement of plans to ease the nation’s fuel economy standards (known as Corporate Average Fuel Economy standards, or CAFE) triggered numerous defenses of the regulation.

CAFE, which began as a program to reduce oil consumption, is now almost always justified on environmental grounds. Fuel economy standards do succeed in reducing greenhouse gas emissions, but market responses to fuel efficiency hikes make the policies less effective. The costs of high fuel economy standards simply do not make sense given the diversity of viable alternatives for reducing greenhouse gases …

Read the full piece as it was published by Inside Sources.

CGO scholars and fellows frequently comment on a variety of topics for the popular press. The views expressed therein are those of the authors and do not necessarily reflect the views of the Center for Growth and Opportunity or the views of Utah State University.