Chart of the Month: May 2005
(click on the image for a larger picture)
As I have noted repeatedly here, debate over CAFE standards is one of the most heated debates in the energy policy domain. I will leave the technical details about CAFE out of this post, but it should be noted that CAFE standards pose a real constraint to the automobile manufactures. It is anybody's guess if fuel economy of new light-duty vehicle would have decreased if CAFE standards were withdrawn after 1985. In short, CAFE standards create a floor for fuel economy of new light-duty vehicles. This is important because much of the technology improvements in the past 25 years have been used up in improving vehicle performance rather than fuel economy. I would post a chart about this next month.