Cafe Standards

Corporate Average Fuel Economy (CAFE)

October 6, 2015

Increasing fuel efficiency provides many benefits to society including lower fuel costs and economic stability. The CAFE standards help to achieve this by requiring that new vehicles meet certain standards of fuel efficiency. In order to strengthen these standards loopholes must be tightened and fines and deterrents increased.

CAFE Standards

As the world’s finite resources such as oil dwindle and the prices of these commodities trend upwards, it is important to utilize what remaining resources are left in the most efficient ways possible. One of the ways in which we preserve these key resources is to increase fuel efficiency. Fuel efficiency is important for several reasons. As previously stated, oil is a nonrenewable resource meaning that once the world’s supply of oil is depleted it the earth will not create anymore at a sustainable rate. By consuming less oil our supply will not only last longer but it will also result in higher air quality due to a reduction in the amount of pollutants being released into the atmosphere. The US is also heavily dependent on imported oil. As seen in the 1975 Arab Oil embargo, political climates and heavy dependency on oil can threaten the domestic economy. Finally, there are cost savings in reducing how much oil is consumed. Recently proposed Phase 2 MD/HD vehicle fuel efficiency standards by the EPA and NHTSA are expected to save Americans $170bn in fuel over the life time of the vehicles sold through the program (NHTSA).

The US implemented the CAFE standards in 1975 in response to the Arab Oil embargo to help increase fuel efficiency in its domestic fleet. These standards increase overall fuel efficiency by forcing car manufacturers to manufacture vehicles in compliance with emissions standards and fuel efficiency standards set by the DOT (Department of Transportation) and EPA. The EPA also requires that efficiency be labeled so that consumers can make informed...