Abstract

For at least the remainder of this century, the United States faces a growing dependence on imported oil. Costs are substantial, and they will mount. In June 1992, net imports provided nearly 50% of supplies, and their cost was $4.3 billion. Cost of net imports of motor vehicles and parts amounted to $3.0 billion. The two items combined totaled more than the negative trade balance of $6.6 billion. The light-duty highway fleet alone accounted for 38.2% of U.S. oil consumption in 1988. Correspondingly, the fleet was a substantial emitter of air pollutants - NO{sub x}, CO, and nonmethane hydrocarbons. In addition, it was a major source of CO{sub 2}. The twin problems of oil imports and pollution would be ameliorated if the fuel economy if cars and trucks could be improved and their emissions were also reduced. In principle, the mileage of US automobiles could be substantially improved. But on purchasing a car, U.S. buyers rank fuel efficiency eight when making their choice. They are attracted to options that lower mileage. Consumers also tend to prefer large cars over small ones for reasons of safety. Increasingly, buyers are purchasing light trucks and vans that have inferior fuel efficiency. As amore » result of the above trends, the average mileage of the US automotive fleet has been diminishing. As long as fuel is available at comparatively low prices and there is no federal requirement for better mileage, improvement is unlikely. Moreover, even if improvements were mandated, change would be slow.« less

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