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Fuel Economy Standards Are a Costly Mistake

March 4, 2016
By Salim Furth, PhD, and David W. Kreutzer, PhD

Corporate Average Fuel Economy (CAFE) standards have added thousands of dollars to the prices of new cars, costing consumers at least $3,800 per vehicle since 2009.

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Corporate Average Fuel Economy (CAFE) standards have added thousands of dollars to the prices of new cars, costing consumers at least $3,800 per vehicle since 2009. CAFE standards have a minimal impact on global warming—less than two hundredths of a degree Celsius in 2100 according to the Obama Administration’s optimistic estimate. These standards fail a cost-benefit test by a huge margin.