The new mandate, if it withstands review in 2017, will drive up car prices, eliminate some consumers from the market (thereby threatening auto industry jobs) and create vehicles that are lighter and less safe.
Supporters of the new CAFE numbers give the usual financial claims based on their own crystal ball style guesswork, claiming consumers are going to save money because they won’t spend as much on gasoline.
But they have no real way of knowing what gas prices will be in 2025.
The only certainty in cost considerations is the impact of the new rules on car prices, and those are going to be much higher.
Government estimates place the price increase at under $3,000, but a study released by the National Auto Dealers Association back in April claimed car prices will go up by about $5,000, based on today’s prices.
There’s also the matter of lost tax revenue from gasoline taxes (CBO estimates ~$57 billion). Those revenues will need to made up from other taxes. Car choices will be limited and the prices are going to go up – and probably by a lot more than the current estimates.
There are always unintended consequences as well, ones that nobody is seeing yet.
Defund the EPA entirely.