Tom Warne Report, 13 August 2013
The U.S. has almost unanimously decided that we want more fuel-efficient vehicles to reduce gasoline consumption and reliance among drivers. Environmentalists agree this is best for air quality, oil giants agree this will help stave off catastrophe, and commuters agree buying less fuel will save money in general. How to achieve this goal, however, is not as universally agreed upon.
The U.S. has broadly decided to reach this goal through regulation, using the CAFE standards. Europe has generally opted for the tax method, raising the fuel levies to the point of charging nearly $7 per gallon in the U.K. Which method works best when it comes to pushing for more fuel-efficient vehicles? A quote published in Forbes states it this way:
“Since the 1980s there has been a near perfect experiment in car design. The Americans used rules to define what emissions are acceptable, and relied on the motor-manufacturers to deliver more efficient cars. In Europe, a tax was applied to fuel, and pressure from consumers demanded more efficient cars. The Americans relied on state governmental control; the Europeans relied on the market.
The author then uses the following graph, derived from this paper:
While SUVs are not included in the graph, they would only show the U.S. CAFE system to be even worse than it is. The graph demonstrates that the U.S. CAFE system has left fuel efficiency flat, or possibly even dropping a little, while Europe’s rising taxes having led to a steady increase in efficiency.
This is a very interesting perspective. A number of years ago, I rented a four-door diesel car and traveled all over the UK, both city and country driving. Four of us in the car, with our luggage, and we averaged over 50 mpg. I wouldn’t have believed it if I were not the actual driver, but, it proved to me that it can be done. By the way, as the article suggests, the Brits were very pleased to charge us over seven dollars per gallon. However, somehow it didn’t bother me much knowing the mpg I was getting. I have many friends who drive hybrid cars in the US and don’t get this type of economy. The diesel-powered cars of our past, with their click-n-clack engines, and exhaust stained rear bumpers are not the diesel cars you find in Europe. Turbo charged diesels are quiet, clean and might be the next step towards better efficiency. JN