New Fuel Standards Come Up Short?

  • (Photo by Ben Van Wagoner)

The Bush administration’s new fuel economy
standards mean more fuel efficient cars in the
future. But Lester Graham reports some
environmentalists say it would have been better
for the environment and the economy if the standards
would have required more fuel efficiency:

Transcript

The Bush administration’s new fuel economy
standards mean more fuel efficient cars in the
future. But Lester Graham reports some
environmentalists say it would have been better
for the environment and the economy if the standards
would have required more fuel efficiency:

The standards call for a fleet-wide average of close to 32 miles per gallon by the year 2015.
Environmentalists say the first three years of the five year plan calls for an increase of
one and a half miles per gallon each year. But the last two years only require about a
half a mile improvement each year.

Jim Kliesch is with the Union of Concerned Scientists

“The fact that those numbers
trail off very quickly is a canary in the coal mine that something is amiss in their cost-
benefit analysis.”

The government’s cost-benefit analysis weighs whether more expensive technology –
such as a hybrid drive train – is worth the effort: will it save that money in gasoline.

But
the government’s cost benefit analysis predicted gas prices by 2015 would be about
$2.25 – more than a dollar a gallon less than we’re already paying. Using those prices,
the analysis short-changes the advantages of fuel saving technology.

For The Environment Report, this is Lester Graham.

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