Fuel Economy

Despite technological advances, average fuel economy of new cars and light trucks has declined from its peak of about 26 mpg in 1988 and has remained below 25 mpg since 1993 due to increasing vehicle size and power, the rising market share of light trucks, and the lack of tougher CAFE standards. The original standards for cars were adopted in 1975 and reached their maximum level in 1985. We support current legislative efforts to increase fuel economy standards to 35 miles per gallon for cars and trucks combined over the next decade, and to require four percent annual increases thereafter. This level of improvement is technologically feasible and cost-effective for consumers, and can be achieved without compromising vehicle safety. To facilitate compliance with the higher standards, CAFE should be complemented by a combination of policies, including: implementing tax credits for purchasers of innovative, highly efficient vehicles; expanding taxes on gas-guzzling vehicles; increasing labeling and consumer education efforts; and continuing vigorous R&D on fuel-efficient, low-emissions vehicles.