Quote:
Originally Posted by redpoint5
I like the perspective given here, and the attempt at numbers, but they aren't adding up.
Americans consume 145,000,000,000 gallons of fuel per year. At $2.75/gal, that's about $400 billion/yr. How would the more stringent standard reduce fuel consumption by 1/4?
This also assumes that fuel economy would not otherwise improve at all without government mandate. Not only that, but there is cost associated with hybrid systems, and other research and development of fuel saving technology.
I'm not saying CAFE hasn't contributed to higher fuel economy, only that it isn't simple enough to give CAFE all the credit for saving all the money, or to even determine how much money was saved in the first place.
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The quanta are from 2014 Energy Information Agency, of D.O.E.
* 261,800,000 light vehicles
* 13,476 miles per year
* 21.4 mpg ave
*compared to 13-mpg of pre-CAFE
*@ $2.199/gallon
*12-year lifespan of vehicle
*The prediction is from holding the vehicle population,annual mileage,and fuel price constant at the 2014 values.
* Just a simplified representation.
* The Federal Reserve requires banks to maintain 5% liquidity,then they're free to loan out the other 95-cents of each Dollar.If you take the consumer savings per vehicle and multiply by 261,800,000 we get the US total savings per year.That value,divided by 0.05 yields the capital created by the 5%.
American motorists could actually buy quite a number of car corporations each year with the money they waste on fuel.
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The 2025 vehicles would cost more,but they're gonna cost some more anyway,just due to inflation, in between now and then.
The fuel savings from the Obama standard would overwhelm the initial MSRP sticker price hit at the car lot,showing a life-cycle profit to the consumer.
If I've screwed up the math I apologize and will make things right.I'm not a bean-counter and I don't get paid the big bucks.The real bean counters are staying away from the dance.