Getting More Miles Per Gallon; The Answer May Require Looking Beyond CAFE Standards and Implementing Other Consumer-Oriented Policy Options to Wean Drivers Away from Past Habits (More MILES PER Gallon) (Report‪)‬

In December 2007, concerns over energy security and human-induced climate change prompted Congress to increase Corporate Average Fuel Economy (CAFE) standards for the first time in 20 years. The new standards aim to reduce petroleum consumption and greenhouse gas (GHG) emissions in the United States by regulating the fuel economy of new cars and light trucks, including pickups, SUVs, and minivans. The standards will require these vehicles to achieve a combined average of 35 miles per gallon (mpg) by 2020, up 40% from the current new-vehicle average of 25 mpg. Since Congress acted, the nation witnessed a dramatic rise in the prices of petroleum and gasoline, which reached record levels during the summer of 2008, increasing pressure on policymakers to reduce transportation's dependence on petroleum. Prices have since fallen markedly with the arrival of an economic crisis. But few observers expect prices to stay low when the economy recovers, and many see a future of steadily rising prices, driven by global economic expansion. Thus, the goal of reducing the nation's thirst for gasoline remains an important goal. And although striving to meet the CAFE standards will be an important part of the mix, other policy initiatives will be necessary to make timely progress.