When President Trump traveled to Michigan last week to announce that his administration will reevaluate (and almost certainly weaken) a key environmental achievement of the past decade —new fuel economy and greenhouse gas standards for cars and light trucks — he alleged that “industry-killing regulations” had contributed to a loss of jobs in the U.S. automobile sector. The truth is, however, that there is no factual basis for the claim that stricter standards have killed jobs. There is, however, abundant evidence that these regulations have saved Americans billions of dollars at the pump, bolstered U.S. energy independence, fostered automotive innovation, and led to major reductions in air pollution and greenhouse gas emissions.
TE3 brings economic scholars together with government and industry practitioners to explore transportation and fuel research for energy and environmental policies that will foster progress toward long-term climate protection and business goals.
If EVs are critical to significantly reducing or eliminating carbon dioxide emissions from automobiles over the next three decades – and I believe they are – we need to think about ways to appeal to desires and interests not only of consumers, but of public and private institutions with a stake in our energy and transportation systems. In short, we should extol EVs not for their low-carbon virtue, but as a way to create and to satisfy demand in both the electricity and transportation sectors.
American consumers have been enjoying Christmas since July – that is, July 2014, when the average price for all grades of gasoline peaked at US$3.75 per gallon, according to the Energy Information Administration. Since then, prices have declined substantially, as every motorist knows: to $2.90 by Thanksgiving 2014 and to $2.14 as we approach the end of 2015. In many parts of the country, the price of regular gasoline is well below $2 per gallon today.
On November 30, as the Paris international climate conference was getting underway, the U.S. Environmental Protection Agency (EPA) announced a long-overdue update of Renewable Fuel Standard (RFS) requirements. Originally established in 2005 and then greatly expanded by the Energy Independence and Security Act (EISA) of 2007, the RFS mandates increasing use of ethanol, biodiesel and other biofuels in America's cars and trucks.