Impact of CAFE Standards
Analysis and Recommendations
The CAFE (corporate average fuel economy) program has been controversial since its inception. Sharp disagreements exist regarding the effects of the program on the fuel economy of the U.S. vehicle fleet, the current mix of vehicles in that fleet, the overall safety of passenger vehicles, the health of the domestic automobile industry, employment in that industry, and the well-being of consumers. These concerns are also very much dependent on one another. For example, if fuel economy standards were raised, the manner in which automotive manufacturers respond would affect the purchase prices, attributes, and performance of their vehicles. For this reason,…
