Corporate Average Fuel Economy - Active Debate

Active Debate

CAFE does not directly offer incentives for customers to choose fuel efficient vehicles, nor does it directly affect fuel prices. Rather, it attempts to accomplish these goals indirectly by making it more expensive for automakers to build inefficient vehicles by introducing penalties. The conservative Heartland Institute contends that CAFE standards do not work economically to consumers' benefit, that smaller cars are more likely to be damaged in a collision, and that insurance premiums for them are higher than for many larger cars. However, the Insurance Companies' Highway Loss Data Institute publishes data showing that larger vehicles are more expensive to insure.

CAFE advocates assert most of the gains in fuel economy over the past 30 years can be attributed to the standard itself, while opponents assert economic forces are responsible for fuel economy gains, where higher fuel prices drove customers to seek more fuel efficient vehicles. CAFE standards have come under attack by some conservative think tanks, along with safety experts, car and truck manufacturers, some consumer and environment groups, and organized labor.