The EPA Is Rolling Back Fuel Efficiency Standards
View on Vox website"Since Tesla only makes electric cars, it can sell a variety of state and federal credits to other automakers who are having a harder time meeting these goals. They come in three mutually exclusive categories: zero-emissions vehicle credits, greenhouse gas emissions credits, and fuel economy credits.
'They can leverage the same car in multiple categories,' said Benjamin Leard, a research fellow at Resources for the Future."
"The expectation was that as emissions limits ratchet down, conventional car companies would have to spend more on credits to comply with the rules or invest in cleaning up their cars. But with the emissions and fuel economy standards holding steady, the demand for new credits would shrink.
'I would certainly expect the prices of those credits to go down' with the rollback of the standards, Leard said."
