Source: White House Fuel Economy Report, NHTSA

New CAFE standards to clean the environment, save money, reduce fossil fuel dependency

The new 54.5 miles/gallon (equivalent) CAFE standards are set to cause a dramatic reduction in fuel consumption, reducing dependency on foreign oil, reducing environmental pollution, and saving the American Economy over a trillion dollars, what's not to like about it?

Today the Obama Administration took the long-awaited step of raising the Corporate Average Fuel Economy (CAFE) standard for cars and light-duty trucks to the equivalent of 54.5 miles/gallon by the model year 2025. Cue the cries of righteous indignation from a certain sector of American politics, while we all get a chance to breath cleaner air and have less worries about the impending crunch in fuel supplies over the coming years.

The CAFE standards were first enacted in the wake of the 1973 Arab Oil Embargo to improve the overall fuel economy of America's vehicle fleet, to make the country less susceptible to oil price shocks. The CAFE standards also have an environmental effect, because less fuel burned means less pollution. Finally, it will make the American Economy more efficient because we, collectively, will spend less on fuel, leaving more money in the economy for other purposes.

The NHTSA press release cites a savings of more than $1.7 trillion dollars in fuel costs, or an average fuel savings of more than $8,000 by 2025 per vehicle over its lifetime. The Administration also cites a dramatic reduction in reliance on foreign oil to the tune of 12 billion barrels of oil a year, or 2 million barrels a day, by 2025. This amounts to half of the oil America currently imports from OPEC each day. As for cutting greenhouse gas emissions from cars and light trucks, the Administration cites an emissions reduction of 6 billion metric tons, or more than the total amount of carbon dioxide emitted by the United States in 2010.


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Since it didn't achieve most of these goals the first time, I highly doubt it will achieve them this time around either.
This is a long overdue act of common sense. The technology is there to improve fuel economy. Why not use it!