Op-ed: Is the New Vehicle Efficiency Standards too much of a good thing?
Proposing to introduce a New Vehicle Efficiency Standard can hardly be a bad thing – particularly when you’re the last developed country except for Russia to do so. Phasing it in over five years to catch up to the US (not exactly known for driving small fuel-efficient cars) doesn’t sound too onerous either. And the weight adjusted limits is a nice policy nuance that means that you’re not asked to shift your Ford Ranger for a Ford Fiesta – rather it encourages you to shift from a heavy emitting Ranger to a less heavy emitting Ranger. And if we were to trust the government estimates, then every dollar of cost borne by this policy change will lead to $3 of benefit in fuel costs and the like over time.
Read Kristian Kolding’s full opinion editorial in the Australian Financial Review below:
Kristian Kolding
Head of Consulting, OE Australia
+61 (4) 1040 9070
Kristian Kolding
Head of Consulting, OE Australia
Sydney, Australia
Kristian leads Oxford Economics Australia’s Consulting team, working with public and private sector leaders to help them prepare for the future by applying relevant economic theory and forecasts to inform effective policy and business strategy development.