preview

Average Fuel Economy

Decent Essays

. In 2012, President Obama signed into law a drastic Corporate Average Fuel Economy (C.A.F.E.) standard whereas all new passenger cars and trucks must increase fuel economy to 54.5 miles per gallon (MPG) by 2025. This new law touts that it will save American consumers more than $8,000 in gas over the life of the vehicle, reduce oil consumption by 2 million barrels of oil per day, and cut harmful greenhouse gases by 6 billion metric tons over the life of the program (The White House). On the surface, these statistics appear to benefit both the consumer, and the earth. However, when one looks at the bigger picture and statistics, it does very little to benefit either the earth or even less the consumer. If the administration really wanted to …show more content…

As the median income has essentially remained constant, the total cost to operate a car has drastically risen 311% from 1975 to 2013 with the ownership costs rising from $2,154 in 1975 to $8,876 per year, AFI (USDOT). The total cost includes gas as a percent of total, which has lowered from 33.4% to 22%. The 34% decrease in gas costs does very little to help with the overall 311% increase in the overall cost to operate a vehicle, especially when the median income has essentially remained the same. Even if gas prices do not change as the press release implies, it does nothing to help consumers with the costs to actually operate a vehicle. It may even further increase numerous costs to …show more content…

When adjusted for inflation, the cost of gasoline was $1.81 in 1975 (or 0.53¢ non adjusted). It has since steadily risen to $3.53 in 2013 (XXXX) and has fluctuated since 2013. While the CAFE standards have remained unchanged in years past, consumer demand has been more than adequate in developing more fuel efficient vehicles, due to the higher gas prices. In 2002, The National Academies: Committee on The Effectiveness and Impact of Corporate Average Fuel Economy (CAFE) Standards

Get Access