Lower US gasoline consumption

These price spikes invariably elicit calls for policymakers to do something, but seven Presidents have talked about our country’s urgent need to reduce our oil dependence. Even President George W. Bush, an oilman from Texas, spoke of our dangerous oil addiction. None of these Presidents, however, succeeded in solving this problem.  

However, today the United States has a better opportunity than we have had in decades to lower our country’s gasoline consumption, cut consumer expenses, reduce our dependence on oil and enhance national security. All of these outcomes can be achieved by dramatically increasing the fuel economy of our vehicles.  

In 2007, after almost two decades of stagnation, Congress passed a law requiring an increase in fuel economy of new cars to 35 miles per gallon by 2020. Last year the Obama administration followed the lead of over a dozen “clean cars” states and accelerated the target to 35 miles per gallon by 2016. This same group of policymakers is considering raising the level by a steady 6 percent per year to reach 60 miles per gallon by 2025.

Sixty miles per gallon may sound like a lot, but a rigorous assessment shows that that the technologies are available to reach that goal and consumers would enjoy substantial economic  benefit as a result – an average of over $2,000 per vehicle. This target is also highly popular with consumers. Our survey found that 63 percent of all respondents and 70 percent middle income respondents want the federal government to increase fuel economy standards to 60 miles per gallon by the year 2025.  General Motors and Toyota have said they could reach the goal. 

This is the first time any administration has taken a long-term approach, which fosters and supports a long-term perspective for automakers and the public. It reduces the marketplace risk of investing in new technologies and gives the automakers time to re-orient their thinking and retool their plants. It gives the automakers the time and incentive to educate the public about fuel economy.

Consumer support and automaker confidence that much higher standards can be achieved reflects the fact that the major automakers are adding a full line of plug in and hybrid electric vehicles to the models that consumers prefer – mid-size cars and SUVs. Gasoline powered vehicles already deliver as much mileage as some of the hybrids and improvements in engine efficiency, transmissions, body design, materials, and reductions in rolling resistance can dramatically increase the efficiency of gasoline engines. 

The new approach to standards sets separate, technology neutral mileage standards for cars and trucks according to their size, so there is no incentive to downsize vehicles. Under these standards, automakers will have the incentive to compete to create more fuel-efficient vehicles of all shapes and sizes, while consumers will enjoy the full range of vehicle options. These rules won’t force car buyers into smaller vehicles. Rather, they will ensure that consumers who want or need SUVs or trucks will have plenty of options — and those options will be more fuel efficient to boot. 

The most important short term action that policymakers can take to solve the oil addiction problem is to make a long term commitment to higher fuel economy standards. Quick fixes and political grandstanding will simply delay the day of reckoning and make it exponentially more painful when it inevitably comes. Increasing domestic drilling for oil is not the answer. With around three percent of the world’s oil reserves, the United States, which consumes almost a quarter of the world’s oil resources, simply does not have adequate supplies to keep up with our growing demand. Significantly decreasing our consumption through a 60-mpg federal standard is the key.

Technology, economics and public opinion support send a loud message that higher fuel economy is good for consumers, national security and the environment. The only question left to answer is: Will Washington, D.C. listen?

Mark Cooper is Director of Research at the Consumer Federation of America.