|
OT: Cars, fuel economy, and such
the VW thread has been interesting and informative. We bought ours because (in part) it got good mileage. We internalized some of the externality (we also don't drive much -- 3500 miles a year).
A recent post noted the likely demise of CAFE standards. Without getting into the partisan politics of it, what are people's views? I am an economist by training, profession, and psychological pathology. I find CAFE standards to be far inferior to a carbon tax if the goal is to improve mileage. Not completely ineffective, mind you, but less effective than a carbon tax alone or the two together. You would shift some demand toward cars with better mileage. CAFE standards, by averaging, distort incentives for producers.
What are the views of this august group?
|