Improving Fuel Efficiency, Better Gas Mileage, Improved Fuel Economy-How much are we really saving?

IMPROVING FUEL EFFICIENCY The recently announced Corporate Average Fuel Economy (CAFE) standards have been touted as a boon for consumers. Put aside the fact that the standards actually deliver less than they promise — the headline-grabbing 54.5 mpg is actually more like less than 40 mpg on the more familiar EPA window sticker — who wouldn't want better gas mileage? Looking at the vehicles consumers actually choose to purchase each month, the answer seems to be lots of people. Out of 333 2012 model year vehicles sold in the U.S., 50 of them — including 18 hybrids, five diesels and four advanced electric-drive cars — can deliver an EPA-combined 30 miles per gallon or better. There are plenty of efficient vehicles to choose from, but millions of Americans aren't choosing them. Why? Because fuel economy is directly at odds with other vehicle attributes such as space, comfort, performance and safety. Fuel efficiency is a great bonus, but not if it means giving up these other features. In recent years, technology has advanced so quickly that the automakers have been able to introduce better vehicles that also deliver better mileage. But technology has its limits. Push standards too far, too fast, and the manufacturers will figure out how to comply, but at the expense of vehicle features that consumers value. This is no idle threat. In the 1970s, a tsunami of mileage, emissions and safety standards pushed automakers to launch technologies before they were ready. This was especially true for the domestic automakers who were trying to balance the dictates of government and the demands of their customers. The result was vehicle after vehicle with reliability and drivability problems. CAFE standards were spawned in an era when government price controls were viewed as a way to control inflation. The lesson from both should be clear: Government can't mandate consumer demand. And that is the rub. Automakers are building larger, less fuel-efficient vehicles not because they don't care about energy security or the environment, but because their customers demand them. Mandating that car companies build vehicles with unproven, expensive technologies that may be out of step with consumers' needs is a risk not worth taking in a recovering economy. IMPROVING FUEL EFFICIENCY