Charlottesville Breaking News
A week after reports that SUV – but not small car– sales had rebounded came the word that GM and Chrysler are utilizing tax dollars to fight the latest efforts to increase Corporate Average Fuel Economy standards.
Claiming that a vehicle could cost $6,435 more if new proposals are enacted, automakers worry about losing the single area where American manufacturers dominate: car bodies on truck chassis. Environmental groups, of course, are attacking automakers for the millions spent lobbying against higher fuel efficiency, leaving lawmakers again caught between allegedly creating American jobs and long-term environmental and societal good.
Yet our history is clear: CAFÉ standards have been a dismal failure.
Not only do Americans drive more once we purchase higher mileage cars, governmental requirements for more efficiency continually squeeze American automakers and push sales to foreign car makers who primarily compete in markets where high gasoline taxes produce overall consumer demand for efficiency.
It’s time the U.S. considers the economic “first best” solution and actually levy reasonable gasoline and diesel “user fees” on consumers. Italy, after all, with the highest gasoline taxes in the world– and no CAFÉ standards– has the highest-mileage vehicle fleet, as well as much more reasonable mass transit. Japan’s 123-million “tes...