Tag Archives: CAFE

Reaganomics for fuel economy?

electric-car

I chuckled when I saw this article extolling how CAFE fuel economy standards should be replaced with “clean tax cuts.” One proponent said, “If you want more of something, tax it less.”

But apparently, these incentives work only one direction. “It’s very common, historically, for companies to not meet the targets and just pay the fines,” said Josiah Neeley, a senior fellow for the R Street Institute. However, the auto companies were not happy with a proposal to increase the penalty 155%.  Does that mean that the penalty got large enough to incent greater compliance?

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