Study Shows 56 MPG CAFE Standard Actually Saves More Money Than Original 62 MPG

A recent study by the Center for Automotive Research found that with a 62-mpg standard, the amount that a motorist would save in gasoline over a five-year period would not exceed the increased cost of the complying vehicle. As a result, the 62-mpg requirement favored by environmentalists would not be cost-effective. In contrast, several of the less dramatic CAFE targets (47, 51, or 56 mpg) would result in fuel savings that exceeded the increased cost of an average vehicle.

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Joe_Limon - 6/30/2011 12:24:36 PM

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I always wonder if these calculations of fuel economy vs upfront cost factor incorporate the time value of money. I always assume they don't, because most consumers don't use money to make more money.