By Government Accountability Office
ISBN-10: 160692057X
ISBN-13: 9781606920572
ISBN-10: 160692429X
ISBN-13: 9781606924297
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Additional resources for Vehicle Fuel Economy
Example text
NHTSA does not have authority to revise the car CAFE program according to vehicle attributes: NHTSA’s recent revision of the light truck CAFE program generally addressed safety and equity concerns; however, these concerns have not been addressed in the car CAFE program. NHTSA officials stated that one reason the agency had not increased the car CAFE standard is that under the current system, manufacturers may have an incentive to meet higher CAFE standards, primarily by making vehicles lighter and thus increasing their fuel economy.
51] Research indicates that by combining regulatory (namely the carbon cap) and market-based elements (such as credit trading), cap-and-trade programs can produce cost-effective outcomes, especially when compared with regulatory programs. For example, the cap sets a predetermined limit on emissions, but credit trading allows the industry to achieve the goal in the least costly manner by allowing companies for whom compliance costs are low to overcomply and sell allowances to those companies for whom compliance costs are high, all while remaining within the overall cap.
5 n2 , 0. 5 0 Unadjusted MPG Source: DOE. Figure 4. Gas Guzzler Tax Structure. Several issues may limit the effectiveness of the Gas Guzzler Tax. First, although the tax was intended to discourage the production and purchase of vehicles obtaining a low fuel economy, its structure has not been updated since 1990, and the extent to which the tax serves as an effective disincentive is not clear. Because the amount of the tax has not been adjusted for inflation since 1990, it is less expensive for manufacturers to pay the tax now than it was in years prior to 1990, so the tax might be less of a disincentive now than in the past.
Vehicle Fuel Economy by Government Accountability Office
by Ronald
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