In October, the EPA and DOT released the US plan to reduce emissions and now Europe is considering its own fuel economy regulations.
There are a number of problems with business as usual in the automobile industry in the EU. First, petroleum imports cost about $1.3 billion daily and rising. Closely related to the amount of fuel consumed is increased carbon dioxide emissions. Finally, without a need for increased innovation in the automobile industry, the number of jobs doesn’t rise all that quickly. Fuel economy regulations could change all of that.
Consultants Cambridge Econometrics and Recardo-AEA found that more fuel-efficient vehicles would reduce petroleum consumption and could save better than a quarter billion dollars daily in fuel costs. Legislators feel the added push of fuel economy regulations could speed up the development of even more fuel-efficient vehicles. Fuel consumption goes down, carbon dioxide emissions go down, petroleum imports go down.
Not all is down though, and legislators point out that fuel economy regulations would also spur the growth of jobs in the automobile sector. As many as 440,000 more jobs, when compared to the business as usual model, could be created in order to meet the demand for more fuel-efficient vehicles.