The Obama Administration imposed fuel efficiency standards on the automobile industry requiring them to increase fuel efficiency standards to 54.5 miles per gallon by 2025. Now carmakers are reportedly asking the incoming Trump administration for a “a pathway forward” on setting final fuel efficiency standards through 2025 and calling on the next administration to “harmonize and adjust” the rules.
Predictably, any hint that regulations might be rolled back brings forth howls of protest from activists. And so it has. Public Citizen, the self-styled “people’s voice in the nation’s capital” issued a press release decrying the notion that corporate average fuel economy (CAFE) standards might be loosened:
In 2009, in the aftermath of financial losses that stemmed from poor sales of inefficient fleets and higher oil prices, American taxpayers rescued the auto industry after it nearly went out of business. Now, this same industry sent a memo to Trump’s lobbyist-staffed transition team asking for permission to ease off improved fuel economy standards.
Let’s not forget that the reason the auto industry had to be bailed out was because automakers built a fleet of gas-guzzling sports utility vehicles that they could no longer sell. More fuel efficient cars would have saved them and taxpayers the trouble, but now it appears that the auto industry has learned nothing from its recent mistakes.
Federal regulators raised fuel efficiency standards because they save consumers money and are an important part of our effort to combat climate change.
Back in 2009, I criticized Obama’s proposed CAFE standards as an inefficient stealth tax on driving. It’s inefficient because drivers pay more, car companies make less money, and state and federal governments don’t get any extra revenues. If activists and politicians want Americans to drive more fuel-efficient cars, the simple and honest thing to do would be to substantially raise gasoline taxes concluded a 2002 National Academy of Sciences report. Ultimately, I argued, setting CAFE standards is just a way for cowardly politicians to avoid telling their fellow citizens that they should pay more for the privilege of driving.