Sir, we urge you to introduce legislation directing the National Highway Traffic Safety Administration to write regulations making the "credits" that automakers can earn for exceeding current fuel economy requirements fully salable, both between a given manufacturer's passenger car and light-duty truck fleets and also between different manufacturers.

Carolyn Fischer on Rewarding Automakers
for Fuel Economy Improvements

Whereas considerable acrimony surrounds every major effort to change fuel economy standards, the benefits of tradable credits should be uncontroversial, regardless of the prevailing standard.

Download this Policy Recommendation

Carolyn Fischer concentrates her research on the design of market-based environmental policies, including the costs and benefits of different options for allocating tradable emissions permits. She has explored policies to reduce emissions of greenhouse gases, improve fuel economy, promote technological advances, and better manage natural resources.

Paul R. Portney is president of Resources for the Future and is the author or coauthor of ten books, including Public Policies for Environmental Protection. He is former chief economist at the Council on Environmental Quality.
Chapter 3. A Carbon Tax to Reduce the Deficit

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