US study says stronger fuel economy standards would benefit economy
Wed 18 July 2007
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A US study published by the Union of Concerned Scientists says that higher fuel efficiency would create more than 240,000 jobs by 2020, cut oil use by 1.6 million barrels, reduce vehicle greenhouse gas emissions by 260 million tonnes and mostly benefit US consumers.
The results of the study conflict with warnings by carmakers that higher efficiency standards would have an adverse effect on the car industry and the US economy.
The study estimates that a modest fuel economy standard of 35 miles per gallon by 2018 would benefit the automotive sector with 23,900 additional jobs and lead to net savings of $37 billion dollars for consumers in 2020 alone. With estimated fuel savings of $61 billion at the fuel pump, the cost of new technology would therefore more than pay for itself.
The report assumes that consumers spending less on fuel would increase their spending on goods and services in other sectors. On top of that, the investment in new machinery and tooling would create additional jobs in the manufacturing and supplying industry.
US legislators are are expected to decide shortly whether to adopt a Senate proposal to raise fuel economy to 35 mpg by 2020.
Meanwhile, a group of the US' largest car makers have begun an advertising tone which sets a different, softer tone to earlier messages which were hostile to the proposed new regulations.
According to the The Detroit News (see link), the new approach comes after an intensive lobbying effort by the car makers failed to head off the Senate bill.
The alliance's vice president, Gloria Bergquist, is reported as saying: "We are the first to voice a mea culpa. We played a role in a public debate that sounded like a "Crossfire" show.
"CAFE has become a screaming match, and we are trying to move beyond the political rhetoric of rallies with dinosaur heads and TV actors testifying on technology. There are serious policy issues at stake here that will affect millions of jobs and the daily lives of consumers nationwide, and we need a serious dialogue."
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