Funky Cars > Corporate Average Fuel Economy Standards (C.A.F.E. Economics 101 ...

[Mountain Sage] A 30 cent per gallon tax increase, according to Eugene Gotwalt is the way to go to encourage fuel conservation.  There’s a lot wrong with that position in my opinion, but the first is he claims that increase would cost consumers approximately $225 a year whereas a vehicle with higher MPG standards would cost $1300.   While that  may be true it would be a better comparison to divide $1300 by the number of years the vehicle would be owned by the buyer as well as factoring in the savings on gas for the higher fuel efficiency, add the two and compare that to $225 a year.  In my opinion his comparison as it stands is not a valid and fair comparison of the costs.

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