Cafe Changes, by the Numbers

4 Pages Posted: 16 Jan 2003


To the casual observer, proposals to increase the Corporate Average Fuel Economy (CAFE) standards on vehicles may seem to be a good idea. However, according to the data presented in this article, tighter CAFE standards would save very little gasoline, increase car buyers' costs and lower their benefits, increase pollution and auto fatalities, and shift revenue away from U.S. automakers to foreign firms. Instead of raising the fuel efficiency standards, policymakers would better address any externalities associated with gasoline by raising the gas tax.

Keywords: CAFE, fuel efficiency, corporate average fuel economy

Suggested Citation

Kleit, Andrew N., Cafe Changes, by the Numbers. Available at SSRN: or

Andrew N. Kleit (Contact Author)

Pennsylvania State University ( email )

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