September 24, 2021
The Right Road? Cost-Benefit Issues Raised by Recent Fuel Efficiency Standards
The Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) each released its own proposal for more stringent fuel efficiency standards for passenger vehicles produced in model years 2023-2026. In new research, Senior Regulatory Policy Analyst Dan Goldbeck examines these proposals’ analyses, questioning some of the underlying assumptions and cost-benefit calculations made by the agencies.
While past iterations of these rulemakings have been fully joint ventures, this version involves separate proposals that, due to differing statutory directives, produce somewhat diverging analyses.
Despite this divergence, this latest round continues the recent trend of fuel efficiency rules being among the most economically significant promulgated by any agency.
A further examination of these analytical frameworks, however, calls into question some of the underlying assumptions and cost-benefit calculations made by the agencies in justifying their actions against the current backdrop of market trends.