The Obama administration is mandating that each automaker’s lineup of cars, light trucks and SUVs have an average fuel economy of 54.5 miles per gallon (mpg) by 2025.
Like so many of the administration’s reforms, this one is imposed by executive fiat rather than approved by Congress—and the incoming Republican Congress should try to roll it back.
The stated goal for pushing the new standards—known as the Corporate Average Fuel Economy, or CAFE, standards—is to reduce U.S. dependence on oil, especially foreign oil, and improve the environment. But the mandate won’t achieve those goals.
Suppose that car manufacturers are able to reach the 54.5 mpg goal—the prior CAFE standards set by Congress required 35 mpg by 2020—a goal that is by no means certain. Doing so makes it cheaper to drive a car.
It’s basic economics: When the cost of driving a car declines, people will likely drive more rather than take public transportation, walk or telecommute. So much for the goal of significantly reducing oil consumption.
And if people are driving more, they’re putting more carbon in the air—undermining the administration’s second goal.
Now, improving fuel efficiency is a great goal; we all like going farther on a gallon of gas. But the Obama administration is imposing a vision, whereas most people choose fuel-efficient cars so it costs them less to do all the driving they want.
So while the new CAFE standards are unlikely to help the environment, they will certainly hurt consumers in upfront costs.
The Environmental Protection Agency (EPA) concedes that the new standards will force consumers to pay about $1,800 more for a car.
The agency justifies the increased cost by boasting that consumers will save between $3,400 and $5,000 in gasoline over the life of the car; but those alleged savings will disappear if consumers drive more.
And speaking of saving money on gasoline, the recent dramatic fall in gasoline prices creates another problem for the administration’s goals: cheaper gas means people will drive even more.
The real question is: If more fuel-efficient cars are such a great financial deal, then why aren’t consumers demanding them? Why does the government have to mandate that manufacturers make them?
It’s an Obama administration pattern: The government forces consumers to buy what it thinks people should have, even if it costs them more, not what consumers choose to buy with their own dollars. Can you say Obamacare?
And again like health care reform, expect a lot of gaming the system. The CAFE mileage standards allow some flexibility across a manufacturer’s fleet. And so the automakers add a few models that are very expensive to build and very few people want to buy, like electric cars.
But placating the government with some very fuel-efficient cars allows the manufacturers to build more of what people really want, and what’s profitable: trucks and SUVs.
Finally, when Obama announced the new CAFE standards he claimed, “These fuel standards represent the single most important step we’ve ever taken to reduce our dependence on foreign oil.”
Nonsense!
The important step the country has taken to reduce our dependence on foreign oil is the adoption of new, innovative drilling techniques.
Crude oil production is up 16 percent over 2013, and oil imports dropped 6.2 percent in August, the lowest August-import level in 18 years, according to the government’s Energy Information Administration.
And the irony is that Obama generally opposes more U.S. oil production, even as that production has helped him reduce our dependence on foreign oil.
Congress has supported CAFE standards in the past, but Obama bypassed it—yet again—to get what he wanted. Congress should roll back those mandates and stop forcing consumers to buy what the administration wants.
The above piece has appeared in the following publications:
DECEMBER 1 — ARIZONA DAILY STAR / TUCSON (96,682) Op-Ed “Rule won’t reduce carbon, but will raise car prices”” by Merrill Matthews //http://tucson.com/ap/commentary/rule-won-t-reduce-carbon-but-will-raise-car-prices/article_99a7bba8-e896-5eb6-82e6-9fe3696e828d.htm
NOVEMBER 30 — MEDFORD (OR) SUNDAY MAIL TRIBUNE(22,292) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER 30 — LA CROSSE (WI) SUNDAY TRIBUNE (41,492) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER 30 — SPARTANBURG (SC) SUNDAY JOURNAL-HERALD (51,412) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER 30 — HENDERSONVILLE (NC) SUNDAY TIMES NEWS (20,341) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER28 — REDDING (CA) SUNDAY RECORD SEARCHLIGHT (20,276) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER 30 — MISSOULA (MT) SUNDAY MISSOULIAN (34,546) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://missoulian.com/news/opinion/unrealistic-rule-won-t-reduce-carbon-but-will-raise-car/article_293c1fda-ac40-5a34-ab6b-2d3194244cfd.html
NOVEMBER 30 — SAVANNAH (GA) SUNDAY MORNING NEWS (53,825 // Op-Ed “Should Congress rescind 54/5 mpg mandate? Yes” by Merrill Matthews // http://savannahnow.com/column/2014-11-29/merrill-matthews-should-congress-rescind-545-mpg-mandate-yes
NOVEMBER 30 — PITTSBURGH SUNDAY TRIBUNE-REVIEW (187,536) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://triblive.com/opinion/featuredcommentary/7246674-74/standards-consumers-oil#axzz3KYsY9YaW
NOVEMBER 30 — TARENTUM VALLEY (PA) SUNDAY NEWS (24,178) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://triblive.com/opinion/featuredcommentary/7246674-74/standards-consumers-oil#axzz3KYsY9YaW
NOVEMBER 30 — PLUM (PA) SUNDAY ADVANCE-LEADER (10,573) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://triblive.com/opinion/featuredcommentary/7246674-74/standards-consumers-oil#axzz3KYsY9YaW
NOVEMBER 30 — PINE CREEK (PA) SUNDAY JOURNAL (10,333) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://triblive.com/opinion/featuredcommentary/7246674-74/standards-consumers-oil#axzz3KYsY9YaW
NOVEMBER 30 — SEWICKLY (PA) SUNDAY HERALD (3,110) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://triblive.com/opinion/featuredcommentary/7246674-74/standards-consumers-oil#axzz3KYsY9YaW
NOVEMBER 30 — CONNELLSVILLE (PA) SUNDAY COURIER (6,210) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://triblive.com/opinion/featuredcommentary/7246674-74/standards-consumers-oil#axzz3KYsY9YaW
NOVEMBER 30 — CORAPOLIS (PA) SUNDAY MOON RECORD (3,243) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://triblive.com/opinion/featuredcommentary/7246674-74/standards-consumers-oil#axzz3KYsY9YaW
NOVEMBER 30 — KOKOMO (IN) SUNDAY TRIBUNE (19,210) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER 30 — QUAD-CITY SUNDAY TIMES / DAVENPORT, IOWA (70,051) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER 30 — LAWTON (OK) SUNDAY CONSTITUTION (24,755) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER 30 — LANSING (MI) SUNDAY STATE JOURNAL (52,398) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER30 — SIOUX FALLS (SD) SUNDAY ARGUS (31,527) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER 30 — CONGOO.COM // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER 30 — HAMODIA.COM / BROOKLYN, NY / THE NEWSPAPER OF TORAH JEWRY // Business // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER 29 — BURLINGTON (IA) HAWKEYE (15,943) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://www.thehawkeye.com/story/MCT-Rescind-EPA-pro-112914
NOVEMBER 28 — SHERMAN (TX) HERALD-DEMOCRAT (20,287) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://heralddemocrat.com/opinion/national-commentary/unrealistic-rule-won-t-reduce-carbon-will-raise-car-prices-substantially
NOVEMBER 28 — CANADA FREE PRESS / TORONTO / CANADA’S MOST VIEWED OPINION WEB SITE // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://canadafreepress.com/index.php/article/67917
NOVEMBER 28 — NEW BEDFORD (MA) STANDARD-TIMES (21,582) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://www.southcoasttoday.com/article/20141128/OPINION/141129371/101094
NOVEMBER 27 — CARROLL COUNTY TIMES / WESTMINSTER, MD (24,194) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://www.carrollcountytimes.com/search/sns-tns-bc-rescindepa-pro-20141126,0,6601964.story
NOVEMBER 27 — LAKE WALWORTH (WI) TODAY (40,000) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://www.gazettextra.com/20141126/pro_unrealistic_rule_won8217t_reduce_carbon_but_will_raise_car_prices_substantially
NOVEMBER 27 — JANESVILLE (WI) GAZETTE (21,582) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://www.gazettextra.com/20141126/pro_unrealistic_rule_won8217t_reduce_carbon_but_will_raise_car_prices_substantially
NOVEMBER 20 — WCLO AM/FM / BELOIT-JANESVILLE, WI // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://www.gazettextra.com/20141126/pro_unrealistic_rule_won8217t_reduce_carbon_but_will_raise_car_prices_substantially
NOVEMBER 27 — HILTON HEAD (SC) ISLAND PACKET (19,900) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://www.islandpacket.com/2014/11/26/3454065/unrealistic-rule-wont-reduce-carbon.htm
NOVEMBER 27 — BEAUFORT (SC) GAZETTE (9,961) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://www.islandpacket.com/2014/11/26/3454065/unrealistic-rule-wont-reduce-carbon.htm
NOVEMBER 27 — BRADENTON (FL) HERALD (45,925) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” ////by Merrill Matthews // http://www.bradenton.com/2014/11/26/5497786/unrealistic-rule-wont-reduce-carbon.html
NOVEMBER 27 — BELLINGHAM (WA) HERALD (23,658) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://www.bellinghamherald.com/2014/11/26/3994916/unrealistic-rule-
NOVEMBER 27 — FRESNO BEE (104,991) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews // http://www.fresnobee.com/2014/11/26/4255540/unrealistic-rule-wont-reduce-carbon.html
NOVEMBER 27 — HANOVER (PA) EVENING SUN (18,380) // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER 27 — ARCAMAX.COM // ARCAMAX PUBLISHING // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER 27 — TRIBUNE CONTENT AGENCY.COM // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //
NOVEMBER 27 — McCLATCHY DC.COM // Op-Ed “Unrealistic rule won’t reduce carbon, but will raise car prices substantially” by Merrill Matthews //