Vehicle Regulation
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High Quality Content by WIKIPEDIA articles! CAFE is usually seen as mandating the average fuel economy that each automaker must attain for its vehicles. However, fines for not meeting the required average fuel economy support enforcement of CAFE. The current fine that an automaker not meeting the required average fuel economy pays is $55 for each mile per gallon the automaker's average fuel economy falls short of the requirement, multiplied by total unit sales. The CAFE fine is too small to have induced compliance by itself. The Gas Guzzler Tax applies only to cars and amounts to an average of…mehr

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High Quality Content by WIKIPEDIA articles! CAFE is usually seen as mandating the average fuel economy that each automaker must attain for its vehicles. However, fines for not meeting the required average fuel economy support enforcement of CAFE. The current fine that an automaker not meeting the required average fuel economy pays is $55 for each mile per gallon the automaker's average fuel economy falls short of the requirement, multiplied by total unit sales. The CAFE fine is too small to have induced compliance by itself. The Gas Guzzler Tax applies only to cars and amounts to an average of $585 per mile per gallon below 21.5 miles per US gallon. Recent estimates both by UMTRIvi and by Espey and Nairvii put the value that consumers put on fuel economy at about $600 per mile per gallon. Compliance also depends on interpreting the CAFE fines as penalties for illegal behavior, which would have consequences far more serious for publicly traded corporations than the magnitude of the fines.