Mandated fuel economy standards as a strategy for improving motor vehicle fuel economy.
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1978-10-19
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NTL Classification:AGR-IMPACTS-Environment;NTL-ENERGY AND ENVIRONMENT-ENERGY AND ENVIRONMENT;NTL-ENERGY AND ENVIRONMENT-Environment Impacts;
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Abstract:The major domestic motor vehicle manufacturers have projected that their new car fleet average fuel economy will meet the federal mandated fuel economy standard for 1985, of 27.5 miles per gallon. Assuming that these projections hold true, in one decade the domestic motor vehicle manufacturers will have more than doubled their domestic fleet average fuel economy. The fuel economy improvements will have been made while also meeting more stringent emission and safety standards. These improvement have required significant capital investments. In the process, the domestic auto industry has increased its manufacturing productivity and become a potential competitor in the world motor vehicle market. The pressure these changes has, to some extent, been brought about by consumer forces, but to a much large extent by federal legislation passed in support of the national goals of reducing consumption, reducing deaths and injuries on the highway, and improving air quality. Fuel economy standards have, up to now, been successful in conserving petroleum by forcing improvement in motor vehicle fuel economy. However, if the Nation should choose to further increase motor vehicle fuel economy, the question arises as to whether or not mandatory fuel economy standards are the most effective policy tool for achieving this objective.
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