Corporate Average Fuel Economy: A Relic of the Past

Abstract

We examine the effectiveness of the Corporate Average Fuel Economy program regarding its ability to reduce pollution. Using a variety of automotive reports from the Congressional Budget Office, the Environmental Protection Agency, and the United States Department of Transportation we determine that these standards largely subsidize driving costs for consumers and disincentivize the need for electric vehicles. Our thesis is that CAFE should be repealed, and other more effective environmental policies be examined.