True Progress

In this earlier article on the new CAFE standards, I found that depending on the assumptions made for the number of future miles driven, restricting the speed limit to 55 miles per hour would be a more cost effective and more energy efficient solution than changing the CAFE standard. That analysis only considered the total amount of fuel consumed between the two options. Now, let’s take that analysis a few steps further. Read the rest of this entry »

When Subsidies are Hard to See

When we think of our governments subsidizing a particular industry we usually envision a nice big check sent to them every year to the tune of millions of dollars from tax revenues. Sometimes, instead, it is that industry that is free from a particular tax that most others have to pay. But, what if instead there are payments in kind that elevate one industry or one form of technology over another. Would we recognize those things as government subsidies? Read the rest of this entry »

What would more effectively reduce pollution from small vehicles?

Recently, there was a significant political argument in the United States about the costs and benefits of increasing the Corporate Average Fuel Economy (CAFE) standards. Increased efficiency, the argument went, would reduce the consumption of fuel, and therefore help restrain fuel prices, also reducing pollution from vehicles causing reductions in greenhouse gasses and even more important things in the immediate term including smog producing substances, which are a major concern in large cities with warm climates like Los Angeles, Houston, Dallas-Ft. Worth, and Atlanta. The counter argument said that the costs would be too high, adding to the prices of vehicles, reducing auto industry revenue, eliminating jobs, and reducing passenger safety. Read the rest of this entry »