The transportation sector accounts for the majority of oil consumption in the United States and about one-quarter of the nation’s greenhouse gas emissions. Recently, the US Environmental Protection Agency, along with the National Highway Traffic Safety Administration, released new fuel economy regulations for light-duty vehicles designed to cut gasoline consumption and greenhouse gas emissions in half by the 2025 model year. In addition, medium- and heavy-duty trucks are now subject to fuel economy regulations for the first time.
Next year, the agencies will evaluate the potential effectiveness and cost of these regulations before fully finalizing the new standards. Understanding how consumers and manufacturers have responded to the regulations to date will be useful, and new data are now becoming available as the first phase of the regulations is implemented.
During this First Wednesday Seminar, panelists analyzed some of the emerging information, including consumer demand for fuel economy and how lower gasoline prices can affect future fuel savings from the regulations. Manufacturer responses will also be discussed, including how the production of different vehicle sizes and types can affect regulatory compliance strategies, and how the new markets for emissions and fuel economy credits are developing.