Study finds there aren’t savings with CAFE target of 62 mpg

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Raising the fuel-economy standards is a big debate between the Obama administration, environmentalists and automakers. A recent study by the nonprofit Center for Automotive Research found that increasing the federal fuel economy standards to as high as 56 mpg in the 2025 model year would yield fuel savings to consumers that more than offset an increase in vehicle prices.

The study also found that by lifting the corporate average fuel economy to 62 mpg would result in price increase that exceed fuel savings over a five-year period. the study provides room for compromise on the Obama administration’s preliminary proposal to increase the CAFE to between 47 mpg and 62 mpg from 2017 to 2025 model years.

“Assuming consumers behave rationally, there is lots of opportunity for the Obama administration to achieve its fuel economy goals,” said Center president Jay Baron.

Current rules will require a 35.5 mpg CAFE by the 2016 model year.

– By: Omar Rana

Source: Automotive News