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Improving Automobile Fuel Economy: New Standards, New Approaches

 
 
 
 
 
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In the nearly two decades since the first oil shock in 1973, both regulatory pressure (the Energy Policy and Conservation Act of 1975 and its new-car fuel economy standards) and market forces drove fuel economy of the U.S. new car l fleet from 14 miles per gallon (mpg) to 28 mpg, saving about 2 million barrels per day of oil that would have been used had fuel economy remained at 1975 levels at today’s level of driving. Although gradual retirement of older, less efficient cars and their replacement with new ones continue to raise overall efficiency of the fleet, new car fuel economy has plateaued, and overall fleet efficiency will also plateau unless new car fuel economy once again begins to rise. Because demand for auto travel continues to grow, gasoline use must also increase if fleet efficiency stagnates.

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07/25/2008

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