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Questions and Answers on Fuel Economy
 
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  1. Why is the fuel efficiency of our national vehicle fleet dropping?
  2. How effective have CAFE standards been for reducing gasoline use and protecting the environment?
  3. Could increasing oil supply by tapping domestic reservoirs solve our gasoline troubles?
  4. How far can technology take us?
  5. What role is there for diesel in a strategy to reduce gasoline use?
  6. What are the environmental impacts of increased fuel economy?
  7. Are automakers taking independent action to raise fuel economy?
  8. Have automakers cut corners on today's fuel-efficient models?
  9. How do fuel economy standards affect safety?
  10. If improving fuel economy makes so much sense, why aren't automakers doing it already?
  11. Why not rely on tax credits to improve fuel efficiency?
  12. How much more money are these fuel efficient technologies going to cost consumers?
  13. How would higher fuel economy vehicles affect the economy?

Why is the fuel efficiency of our national vehicle fleet dropping?

The fuel economy of the average new passenger vehicle peaked in 1988 and is now less than it was 10 years ago. The stagnation of Corporate Average Fuel Economy (CAFE) standards since 1985, doubling of annual vehicle miles driven in the last 25 years and the recent explosion of SUV and light truck sales have eaten away at the nation's fuel efficiency. To reverse these trends and provide benefits to consumers and the environment, fuel economy standards need to be increased to over 40 mpg by 2012 and 55 mpg by 2020.


How effective have CAFE standards been for reducing gasoline use and protecting the environment?

CAFE standards increased new car and truck fuel economy by 70 percent between 1975 and 1988. In 2000 alone, CAFE saved American consumers $92 billion, reduced oil use by 60 billion gallons of gasoline, and kept 720 million tons of global warming pollution out of our atmosphere. The original schedule for CAFE improvements ended in 1985, leaving Congress and the administration responsible for future improvements - none of which have been pursued, leading to the current drop in fuel economy of the national vehicle fleet.


Could increasing oil supply by tapping domestic reservoirs solve our gasoline troubles?

We cannot simply drill our way out of the current gasoline price woes; attempting to do so will only increase the severe environmental impacts of driving. Opening the Arctic wildlife refuge today won't produce oil until 2010. By 2012, adopting fuel-efficient technologies would save more oil than is economically recoverable from the Arctic. And tapping technology avoids the environmental degradation and air pollution that accompany increased oil drilling.


How far can technology take us?

Using continuously evolving conventional technologies, automakers could produce a fleet of cars and light trucks that achieve over 40 miles per gallon of gasoline. Using hybrid technologies, the fuel economy level could be raised to 55 miles per gallon. And with fuel cell technology, we could possibly reach near 80 miles per gallon. This vehicle fleet would look much like that of today while maintaining, if not improving, performance and safety standards.


What role is there for diesel in a strategy to reduce gasoline use?

While diesel technology can bring fuel economy improvements, the environmental risks are significant - diesel engines produce increased levels of toxic, particulate, and nitrogen oxide emissions, which threaten human health. Proponents of diesel are fighting to relax air quality standards that protect public health in an attempt to increase their technology's presence on our roads. However, there is no need to sacrifice air quality or human health to achieve fuel economy improvements. The gasoline technologies relied upon to reach over 40 mpg in 2012 and 55 mpg in 2020 can easily meet future emissions regulations and do not have significant toxic emissions associated with their use.


What are the environmental impacts of increased fuel economy?

More fuel-efficient cars and trucks help the environment by reducing both global warming emissions and air pollution. For every gallon of gasoline that is consumed, approximately 24 pounds of global warming pollutants are released into the air. Drilling, refining, and distributing gasoline produced nearly 1,700 million pounds of smog forming emissions and 784 million pounds of benzene equivalent toxic emissions in 2000. Increasing fuel economy standards to 40 mpg in the next decade can cut annual greenhouse gas emissions by 273 million tons in 2010; reaching 55 mpg by 2020 can lead to a cut in annual greenhouse gas emissions of over 888 million tons. In the next decade, higher fuel economy standards can cut annual toxic emissions by 148 million pounds and annual smog forming emissions by 320 pounds; by 2020, these emissions can be cut by 481 and 1,039 million pounds respectively.


Are automakers taking independent action to raise fuel economy?

A number of automakers have pledged to build more efficient automobiles, but these promises result in approximately a 5 percent increase in the fuel economy of each company's fleet by 2005. This would barely slow the growth in gasoline use, consumer costs and environmental pollution. Only through federal fuel economy standards can we lock in fuel economy gains throughout the automotive industry.


Have automakers cut corners on today's fuel-efficient models?

In the past, automakers have only offered no-frills small cars for consumers who wanted fuel-efficient vehicles. Existing improvements and advanced technologies can be used in all types of vehicles, from sub-compacts to SUVs. Saving fuel does not mean sacrificing performance


How do fuel economy standards affect safety?

Safety experts have found no direct relation between increased fuel economy and decreased fleet safety. Technologies, such as variable valve engines, high strength steel and aluminum, and unibody construction, can increase fuel savings while maintaining automotive safety. And by implementing other safety methods, some of which have been in existence since the 1970s, automakers could actually improve safety.


If improving fuel economy makes so much sense, why aren't automakers doing it already?

Automakers have a history of not incorporating cost effective technologies that benefit consumer safety and the environment until they are required to do so. As a result, government has had to step in to protect consumers by setting safety, fuel economy and emissions standards. One of the most recent in a line of examples is the air-bag that is now required in all new vehicles - automakers resisted this technology even in the face of clear demonstration of its safety benefits and calls from consumers for safer vehicles.


Why not rely on tax credits to improve fuel efficiency?

Tax credits are an important part of accelerating the emergence of advanced technology vehicles, but stronger fuel economy standards are necessary to lock in progress and ensure that fuel efficiency gains are seen throughout the industry in all types of vehicles, from sub-compacts to SUVs.


How much more money are these fuel efficient technologies going to cost consumers?

A fleet of cars and light trucks that reaches 40 mpg will cost consumers only about $1,000 to $2,000 extra per vehicle. However, the $2,500 to $5,300 saved on fuel over the life of the vehicle will more than compensate consumers. Overall, American consumers could see annual savings of $9.8 billion by the end of the next decade. By 2020, consumers would have saved a total of $323 billion over less than 20 years.


How would higher fuel economy vehicles affect the economy?

With consumers saving money and automakers being spurned to develop more fuel-efficient vehicles, new jobs can be created and the overall economy will see an increase in wages. By 2010, more than 40,000 new jobs could be created in the automotive sector alone, and the nation's wages and salaries could increase by over $3 billion dollars. By 2020, over 100,000 new jobs could be created in the automotive industry and national wages and salaries could increase by over $10 billion.



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