Corporate Average Fuel Economy: An Evaluation of the Key Concerns and Conflicts in Revising the Standards

This is a public policy paper that presents the key concerns and conflicts of proposed legislation to revise the Corporate Average Fuel Economy (CAFE) standards, evaluates possible alternatives to the proposed legislation, and provides recommendations on the issue. The key conflicts that this paper will address are: (1) the methodology, (2) safety concerns, (3) and environmental aspects of revising CAFE standards.

Market incentive legislation in combination with lead-time and manufacturer sensitive CAFE standards is the direction that would be satisfactory to the majority.