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Has CAFE reached the end of its usefulness?

507 messages,  Last post on Oct 27, 2009 at 11:49 AM

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What is this discussion about? Fuel Efficiency (MPG)


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#290 of 507
Re: think back [li_sailor] = EU & no CAFE [95civic] [boaz47] [nippononly] [ by tpe
Sep 05, 2007 (11:07 am)
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Replying to: boaz47 (Sep 05, 2007 9:41 am)

Tax breaks/incentives certainly are more appealing to the average voter, which is why politicians are more likely to support them. The question I have is how are these tax breaks paid for? It seems to me that there are 3 possibilities. Either a tax hike somewhere else. Reduction in a government service, which is essentially a penalty on whoever was benefiting from this service. Or, the government can choose to simply not fund this tax break and just add it to the deficit, which is a tax hike on the future.
 
Imagine this scenario. What if instead of a tax deduction for children and dependents there was a tax penalty for not having kids? The tax rates could be adjusted so that everyone's tax burden would end up being the same with this method but the psychology would be very different. The people without kids would be wondering why they are being penalized for this. So its easier to sell a tax break even though these breaks end up in higher tax rates for those that don't take advantage of them. So what if everyone took advantage of these tax breaks, wouldn't everyone benefit? Again, I don't see how that's possible.
 
I wouldn't oppose tax incentives and credits for adopting fuel efficient vehicles but they need to be paid for. Since the goal is to reduce fuel consumption what would be the most logical way to pay for these tax breaks? It seems to me that they should be paid for by a fuel consumption tax. That would represent the carrot and stick approach.
#291 of 507
Re: think back [li_sailor] = EU & no CAFE [95civic] [boaz47] [nippononly] [ [tpe] by boaz47
Sep 05, 2007 (11:55 am)
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Replying to: tpe (Sep 05, 2007 11:07 am)

That could be why I keep returning to the free market approach. Build a vehicle the people want and they will buy it. Give them the fuel mileage they want and they will buy it. Things like CAFE simply limit those options to the consumer. Once the government sets a standard then the manufacturer doesn't have any reason to exceed that standard. I believe the EU tax break I was referring to was that they simply didn't tax diesel, or tax it as high, rather than indicating they cut the taxes on diesel. There is no one to take services from because the taxes were never applied in the first place.
 
For most of CAFE's life it did nothing to improve fuel consumption. To even say that without CAFE fuel consumption would have been even higher is pure speculation. Fuel consumption average dropped slightly for the first few years and then started to flatten and then rise every year till people started realizing that CAFE was a waste or time. If a private business took this long to produce results it would have been bankrupt several times over.
#292 of 507
Re: think back [li_sailor] = EU & no CAFE [95civic] [boaz47] [nippononly] [ by tpe
Sep 05, 2007 (2:08 pm)
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Replying to: boaz47 (Sep 05, 2007 11:55 am)

I don't mind letting the free market sort this out. However it might not result in the smoothest transition to oil alternatives. I believe that barring a global economic recession gas prices will continue to climb. This climb probably won't be gradual and steady. In all likelihood it will be an overall trend that involves increasingly large price swings in both directions. Now I'm not referring to you with this comment but I wonder how many free market advocates will be asking for government intervention on the price spikes.
#293 of 507
shoot by nippononly
Sep 06, 2007 (10:35 pm)
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You don't think the politicians know that all eyes turn accusingly to them every time the price of gas spikes? That's the reason we have these ridiculous "investigations" into "price gouging" every year or two, all of which inevitably come to naught, and is the reason there will continue to be some kind of government intervention into fuel efficiency.
 
And boaz, my simple response to your proposed system of market forces solving this problem is to point out that consumers are selfish and fairly uninformed on long-term costs of vehicle ownership, the U.S. has a massive effort in place to keep oil prices artificially low, and fuel efficiency won't sell itself to the average American buyer enough to make the U.S. a good global neighbor with regard to oil consumption.
#294 of 507
Re: shoot [nippononly] by boaz47
Sep 07, 2007 (4:28 pm)
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Replying to: nippononly (Sep 06, 2007 10:35 pm)

There is no such thing as a good global neighbor in this case Nippon. We are selling our excess industrial diesels that won't meet our air standards to China who has air quality as bad if not worse than ours. The air they breath in China is the same air we breath. We are simply moving the problem out of sight. Go visit some of these developing countries and see what selfish and disregard is. I know they have economic reasons and understand why they do what they do but if they would make a vehicle that people wanted they would buy it. Look at the Iphone. People waited in line to get them even though they were way more expensive than other phones. If they make a product the people want they will sell them by the boat load. But if you try to force something on them they don't want they will break their neck trying to find a loop hole that allows them to avoid getting what you want. Why in the world do you believe Trucks are getting so big? Because 3/4 ton trucks are exempt from many of the restriction placed on other vehicles. CARB and CAFE created these loopholes and people litterly drove a truck through them.
#295 of 507
Re: shoot [boaz47] by gagrice
Sep 07, 2007 (5:03 pm)
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Replying to: boaz47 (Sep 07, 2007 4:28 pm)

Why in the world do you believe Trucks are getting so big? Because 3/4 ton trucks are exempt from many of the restriction placed on other vehicles.
 
That is exactly right. I know several people that buy big trucks to get the diesel engine. It costs more but has a lot more to offer including better mileage than any 1/2 ton PU. In CA no smog checks on those big diesels. First thing they do is head to the muffler shop and strip all the factory crap off and get straight exhaust. VW built the Touareg V10 diesel heavy enough to be sold in CA. A bit overkill but you don't have to put up with the ignorance in Sacramento.
#296 of 507
Re: shoot [boaz47] by nippononly
Sep 07, 2007 (8:00 pm)
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Replying to: boaz47 (Sep 07, 2007 4:28 pm)

Didn't you hear? They've been disappointed with iPhone sales, and have just anounced they are dropping the price by $200, barely 3 months after its debut!
 
I will say it again: consumers won't ever spend one thin dime more to pay for something that is good for everyone else, they will only pay more if it is better for themselves. That is why at a societal level, the only reforms we will initiate successfully are the ones we institute at the government level. Your idea of letting market forces solve the problem would only work if pollution in the air including CO2 emissions were assigned a dollar value commensurate with the harm it is causing, then that cost in dollars were spread out and charged equally to all licensed drivers who own a vehicle. Since that is clearly NOT the system, market forces will not help us out of this predicament.
 
Hey, didja notice the German foreign minister was here this week to praise California for taking steps to stem global warming, and was suggesting California join the EU coalition of countries trying to fight the problem? Oh, and did you notice where else he stopped to congratulate folks in this country on their efforts (nowhere)?!
#297 of 507
Re: shoot [nippononly] by boaz47
Sep 08, 2007 (6:05 am)
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Replying to: nippononly (Sep 07, 2007 8:00 pm)

Yes my friend. I did hear about a price drop for Iphones. I also realize it didn't take government intervention for the consumer to let the manufacturer know how they felt. It also didn't take more than 20 years to drop the prices.
 
You concern for "other people" is fine if your legislation effects what those other people do as well. We discovered that particulants were a health hazard yeas ago and in fact banned diesel sales of new vehicles in California for 4 years. Who else cared? We have had higher cost for Gas because of the cleaner fuel we require in this state for years. Who else cares? More states didn't and hardly any other country does.
 
Sure, over a very long period of time government action may show some sign of change but in our case and CAFE how long is long enough? Consumer demand can change Iphone in a matter of month. Government intervention takes years to do what the market can do in months.
 
we may both want the same thing but our road to get there is different. I believe people want better fuel mileage and cleaner cars. But once the government sets a standard we as a society seem to figure that standard is good enough and the manufacturer has no incentive to do better. And don't even get me started on CARB and the wasted years spent on EV research only to get just exactly what was offered to them in the very beginning of the effort. Maybe the greatest failure was the mandate to have a percentage of every fleet to have some zero pollution vehicles by 2000 was it? Only to forget the whole thing and except hybrids as the solution. I guess I am just tired of government smoke and mirrors.
#298 of 507
Re: think back [gagrice] by rockylee
Oct 11, 2007 (5:09 pm)
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Replying to: gagrice (May 11, 2007 7:20 am)

John Edwards, owns a couple of hybrids.
 
-Rocky
#299 of 507
Re: think back [rockylee] by volvomax
Oct 12, 2007 (10:06 am)
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Replying to: rockylee (Oct 11, 2007 5:09 pm)

He needs them to get around in his 25,000 sq/ft house

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