Improving Fuel Economy in Heavy-Duty Vehicles

Abstract

In September 2011, the National Highway Traffic Safety Administration (NHTSA) and the U.S. Environmental Protection Agency (EPA) jointly promulgated the first-ever federal regulations mandating improvements in fuel economy among heavy-duty commercial vehicles (HDVs). Although much more complex than the corporate average fuel economy (CAFE) standards for light-duty vehicles, the rules employ many of the same concepts and regulatory strategies. While regulatory familiarity can be advantageous for almost all interested parties, the approach also has weaknesses. In this issue brief, the authors describe fuel economy technologies for the trucking sector, its economic structure, the details of the new fuel economy regulations for heavy-duty trucks, and the controversies they sparked. They also cite problems with the underlying cost–benefit analysis of the regulation and highlight some flaws of this form of regulation. The authors conclude by suggesting a variety of alternative, more market-oriented approaches that might work better.