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Higher fuel efficiency would boost US economy |
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Tougher fuel economy standards would create more than 240,000 jobs by 2020, consumer groups estimate. They are urging the Congress to set up strict emission limits when it decides on a Senate proposal next week.
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2007-07-18
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Moving existing technology into cars and trucks to achieve higher fuel economy standards would cut the national oil use by 1.6 million barrels per day, reduce vehicle greenhouse gas (GHG) emissions by 260 million tonnes, and largely benefit US consumers. These are key results from a study issued by the Union of Concerned Scientists (UCS) last week, that conflicts with warnings by carmakers that higher mileage standards would deteriorate the car industry.
More specifically, the study estimates that a modest fuel economy standard of 35 miles per gallon (mpg) by 2018 would benefit the automotive sector with 23,900 additional jobs and lead to net savings of $37 billion dollars for consumers in 2020 alone. With estimated fuel savings of $61 billion at the gas pump, the cost of new technology would therefore more than pay for itself, the study concludes. Its findings are based on the assumption that consumers spending less on fuel would increase their expenditures on goods and services in other sectors. On top of that, the investment in new machinery and tooling would create additional jobs in the manufacturing and supplying industry.
Detroit moves too slow for US consumers
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The UCS study results are in line with the latest report from another consumer group concluding that US carmakers will continue to loose sales worldwide unless they improve vehicle fuel economy. The report, issued by the Consumer Federation of America on 17 July, shows that while gas prices have been exploding in the last years, the number of car models achieving at least 30 mpg has decreased from 61 to 46 in the period 1998-2007.
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The consumer group is therefore urging the Congress to adopt higher mileage standards to satisfy consumers’ demand for fuel-efficient vehicles. In addition, this would help the car industry remain competitive. Lawmakers are expected to decide, by next week, on a Senate proposal to raise fuel economy to 35 mpg by 2020.
Positions
"Our nation's top scientists and engineers have shown that cars and trucks could average 37 mpg by 2017 using conventional technologies in the toolbox of all automakers," the Union of Concerned Scientists states. "The least that Americans deserve is to lock in the modest target of a 35 mpg fleetwide average by 2018."
"By passing a strong [Corporate Average Fuel Economy] requirement, without loopholes, Congress will be providing a blueprint to help the 'Big 3' become competitive again by building the vehicles that the American consumer really wants," the Consumer Federation of America concludes.
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More information:
 UCS Report "Creating
Jobs, Saving Energy & Protecting the Environment" (478 KB)
CFA Press Release 17 July, 2007 (353 KB)
› Read our article: "US Senate approves new fuel efficiency standards", 22 June
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