Friday, August 19, 2011

Fuel efficiency standards have costs

The Obama administration recently announced ever more stringent fuel efficiency standards for vehicles. In doing so, it touts the fuel to be saved as a result of requiring cars, trucks and buses to go farther on a gallon of gas.

But the administration doesn't tell you about the trade-off: That the entry price to get into one of those new vehicles may skyrocket.

CNS News delves into the cost issue:
The Obama Administration’s new fuel economy standards will cause the retail price of average motor vehicles to increase over $11,000, according to a study conducted by the Center for Automotive Research.
The CNS article is available in full here.

Mandating higher vehicle prices in good times is a trade-off. In bad economic times, it's madness. We're being steered in a direction where new vehicles may go farther on a gallon, but be less efficient in performing their basic functions. 

Buses will run slower. Trucks carry less freight. Cars will be smaller.

Vehicle makers may begin to downplay the U.S. market by offering only a portion of their product lines to American buyers. Or offer us special under-powered models, while offering full-power vehicles to other nations.

And additional costs at point-of-purchase will likely mean businesses and individuals will defer vehicle replacement whenever possible. 

Worn and dirty vehicles will stay on the road longer.

We may be on the road to becoming another Cuba where families pass their aging road relics down from generation to generation.

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