Calls for additional fuel economy regs not practical
In yet another example of bypassing the legislative branch, earlier this week the President ordered his administration to develop and enact new fuel economy standards for commercial trucks by March 2016. Predictably, the eco-activist groups have come out in favor of the move, but less predictably, some large fleets and industry associations are also supporting the plan.
The activists touting the (magical) consumer cost savings of increasing fuel economy have conveniently forgotten to consider the equipment and logistical costs involved in reaching unrealistic fuel economy goals. Ultimately, making any huge gain in fuel economy comes down to cutting horsepower and productivity. These cuts result in significantly increased transportation costs.
When announcing the plan, the President once again trotted out the oft-debunked line that trucks only represent 4% of vehicles on the US highways but account for 20% of on-highway fuel consumption. What’s missing in this hackneyed comparison is the fact that trucks deliver more than 60% of all freight moved in the US. Not a bad bargain for just 20% of the fuel.
Tags: Alteranate Fuels
, Fuel Economy