2009-01-26

The argument against CA fuel economy standards

As the Obama administration appears ready to allow CA to impose its own emissions standards on auto manufacturers, there is a lot of chatter if that is the best solution.  The main argument against state specific fuel standards is that it may force automakers to provide different cars for each market, thereby increasing manufacturing costs.  Opponents of the state specific proposal would rather just raise the gas tax.

I think that both moves are important.  If one state decides that it wants to limit pollution and feels that the federal standard is lacking, it should be able to.  However, I agree that adding $2/gallon to the federal gas tax would probably be the smart move in the long term.  It would not be difficult to add 50 cents a year for 4 years to the gas tax, such that in 2013-2014, a gallon of gas would cost around $4, given today's prices.  This would surely force manufacturers to come out with more efficient models and entice consumers to buy them.  

1 comment:

Anonymous said...

Make cars fuel efficient without raising the gas tax.