EPA v. Markets, Yet Again

David Kreutzer / October 26, 2010

A common promise among politicians is to “run the government more like a business.” The Obama Administration seems to have promised to have “government run more businesses.” The latest in the line of government takeovers and mandates is the proposal to subject heavy-duty trucks to fuel-efficiency regulations.

These efficiency mandates are promoted as saving the vehicle operators money—the fuel costs supposedly go down more than the initial capital costs go up. What this Administration does not seem to be able to understand is that businesses (both truck buyers and sellers) are already seeking out these efficiency improvements.

Indeed, the EPA’s own analysis of the proposed regulations notes that the fuel efficiency for heavy-duty vehicles has improved about 1 percent per year for the past 30 years. This improvement came without any fuel-economy standards—that is, entirely in response to market incentives for efficiency. (more…)