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Corporate Average Fuel Economy - School Essays

Corporate Average Fuel Economy



The foreshadowed Market Failures of the mid 1970's gave way to Corporate
Average Fuel Economy, regulation which would call for new standards in
automobile fuel efficiency. The market failures hinged on a number of outside
variables which could have had a drastic effect on domestic markets.

Resource Scarcity drove the American public to call for a more efficient
means of managing its resource use due to a) oil embargos on nondomestic
products and b) skyhigh prices at the pump.

Conservation of the world's non-renewable resources cams to the
foreground with a) higher pump prices and b) forecasted resource
expenditure before the year 2000.

With Corporate Average Fuel Economy in place ...

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of fuel consumption thus
nullifying high pump prices and b) raise the level of conservation by
lowering the amount consumed.

Although the intentions of Corporate Average Fuel Economy in the 1970's
was thought to be a cure-all but, over the long run it has turned out to be a
flop. The variables on which it was based, turned out to be almost exactly
opposite.

Lower Gas Prices have a) caused the public to simply use more fuel, b)
drive more frequently due to less fuel consumption and c) look beyond
fuel economy when in the market for a new vehicle.

Quality Depletion of the total domestic car fleet due to special
attention to only the fuel economy while ignoring: 1) performance, 2)
acceleration and 3) handling.


*** With CAFE becoming a long-term flop, in its first years it did have its
benefits. Both the public sector and the private interests gained from the
regulation in the beginning.

--> Public Interests gained from this legislation due to a) to ability
to get more ...

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Corporate Average Fuel Economy. (2007, July 10). Retrieved December 23, 2024, from http://www.essayworld.com/essays/Corporate-Average-Fuel-Economy/67824
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"Corporate Average Fuel Economy." Essayworld.com. July 10, 2007. Accessed December 23, 2024. http://www.essayworld.com/essays/Corporate-Average-Fuel-Economy/67824.
"Corporate Average Fuel Economy." Essayworld.com. July 10, 2007. Accessed December 23, 2024. http://www.essayworld.com/essays/Corporate-Average-Fuel-Economy/67824.
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PAPER DETAILS
Added: 7/10/2007 11:12:15 PM
Category: Economics
Type: Free Paper
Words: 647
Pages: 3

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