A Small Solution to a Large Problem: Simple Changes to Make CAFE Standards Better

Abstract

In light of America's ongoing fuel crisis, this paper offers a pair of very simple changes to the National Highway Traffic Safety Administration (NHTSA) methodology for determining Corporate Average Fuel Economy (CAFE) standards for vehicles. The paper includes a description of the current CAFE standards and how those levels are set, a brief description of two federal court cases critical of those standards, as well as my proposed remedies.