In 1975, in response to the first OPEC oil shock, Congress enacted fuel-economy standards for new cars sold in the U.S. Vehicle producers-- domestic and foreign-- were required to achieve a minimum Corporate Average Fuel Economy (CAFE) performance of 27.5 miles per gallon (an average of a manufacturer's entire new-car fleet) by the 1985 model year. Congress chose this regulatory strategy instead of economic incentives in part because it was committed--rightly or wrongly--to price controls to cushion consumers from rising oil prices. Despite the desire to reduce our country's reliance on foreign oil, the view of this article is that CAFE is not a sound energy-conservation policy. Issues such as decreased safety in lighter vehicles are discussed.

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  • Corporate Authors:

    American Enterprise Institute for Public Policy Research

    1150 17th Street, NW
    Washington, DC  United States  20036
  • Authors:
    • Crandall, R W
    • Graham, J D
  • Publication Date: 1991-3


  • English

Media Info

  • Pagination: p. 68-69
  • Serial:
    • American Enterprise
    • Volume: 2
    • Issue Number: 314
    • Publisher: American Enterprise Institute for Public Policy Research
    • ISSN: 1047-3572

Subject/Index Terms

Filing Info

  • Accession Number: 00728965
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Dec 2 1996 12:00AM