Obama proposes greater fuel economy
US President Barack Obama has proposed rules requiring higher fuel economy (and lower carbon dioxide emissions) standards for cars.
Under the rules, new passenger vehicles and light trucks must average 35.5 miles per gallon by 2016. The move is another step towards proposed biofuel mandates to clean up cars and the environment.
The move looks to mirror the national rules previously proposed in California and is also a big win for environmentalists, who have been pushing for years for
more fuel-efficient cars.
The Obama Administration has brought the Environmental Protection Agency and the Transportation Department to correspond the limits on greenhouse gas emissions and fuel-economy standards.
The new proposal also adds more clarity to the car industry as it imposes a federal standard instead of them having to meet differing state rules, not to mention ending years of costly litigation over the proposed California rules.
However, the proposed rules could have serious negative consequences unless the government agrees to raise the price of using fossil fuels, as experts believe that many Americans will choose not to buy higher-mileage cars as long as petrol remains at $2 (€1.4) per gallon, or lower.
The second half of 2008 saw a 5% drop (compared with 2007) in petrol use, which helped lower the average price at the pump from $4.14 per gallon to $1.74.
With the inclusion of the proposed rules, combined with the planned additional biofuels mandate (36 billion gallons by 2022) and the rise of electric cars, there could be the potential to cut petrol use by a staggering 15% or more.
Even with global demand picking up after the recession ends, the world could be awash in petrol.
Under the rules, new passenger vehicles and light trucks must average 35.5 miles per gallon by 2016. The move is another step towards proposed biofuel mandates to clean up cars and the environment.
The move looks to mirror the national rules previously proposed in California and is also a big win for environmentalists, who have been pushing for years for
more fuel-efficient cars.
The Obama Administration has brought the Environmental Protection Agency and the Transportation Department to correspond the limits on greenhouse gas emissions and fuel-economy standards.
The new proposal also adds more clarity to the car industry as it imposes a federal standard instead of them having to meet differing state rules, not to mention ending years of costly litigation over the proposed California rules.
However, the proposed rules could have serious negative consequences unless the government agrees to raise the price of using fossil fuels, as experts believe that many Americans will choose not to buy higher-mileage cars as long as petrol remains at $2 (€1.4) per gallon, or lower.
The second half of 2008 saw a 5% drop (compared with 2007) in petrol use, which helped lower the average price at the pump from $4.14 per gallon to $1.74.
With the inclusion of the proposed rules, combined with the planned additional biofuels mandate (36 billion gallons by 2022) and the rise of electric cars, there could be the potential to cut petrol use by a staggering 15% or more.
Even with global demand picking up after the recession ends, the world could be awash in petrol.
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