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Can Fuel Efficiency Standards Be Met Cost-Effectively? | Briefing | EESI

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This briefing discusses the challenges of meeting 2025 Corporate Average Fuel Economy (CAFE) and greenhouse gas (GHG) standards, proposing high-octane, low-carbon fuels as a cost-effective compliance pathway for the automotive industry and consumers.

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  • The National Highway Traffic Safety Administration (NHTSA) and EPA jointly administer fuel efficiency standards (CAFE and GHG) intended to reduce petroleum use and greenhouse gas emissions by 2025. The auto industry argues that meeting these standards is now impossible due to sustained low gas prices and the increased popularity of SUVs and trucks.
  • There is a significant shift toward smaller, more efficient direct-injection, turbocharged engines in the U.S. light-duty vehicle market. Production of these vehicles rose from approximately 3 percent in model year 2009 to nearly 18 percent in model year 2014, with projections suggesting they will exceed 80 percent of sales by 2025.
  • High-octane, low-carbon fuels are presented as the lowest-cost option for industry and consumer compliance. Specifically, a blend of 25 percent ethanol and 75 percent gasoline (E25) could improve fuel efficiency by 5 to 10 percent, reducing tailpipe emissions and consumer costs.
  • The U.S. transportation sector accounts for 50 percent of all toxic emissions and 27 percent of greenhouse gas emissions in the United States. While electric vehicles offer the highest potential for emission reductions, internal combustion engines are expected to dominate sales for several decades, making fuel economy improvements for these engines critical.

Cite the original document

APA
McCormick, R., West, B., Drake, D., & Varcoe, A. (2017). Can Fuel Efficiency Standards Be Met Cost-Effectively? | Briefing | EESI. Environmental and Energy Study Institute. https://www.eesi.org/briefings/view/111317cafe
Chicago
McCormick, Robert, Brian West, Dean Drake, and Andrew Varcoe. Can Fuel Efficiency Standards Be Met Cost-Effectively? | Briefing | EESI. Environmental and Energy Study Institute, 2017. https://www.eesi.org/briefings/view/111317cafe.
Wikipedia
{{cite report |last1=McCormick |first1=Robert |last2=West |first2=Brian |last3=Drake |first3=Dean |last4=Varcoe |first4=Andrew |title=Can Fuel Efficiency Standards Be Met Cost-Effectively? | Briefing | EESI |publisher=Environmental and Energy Study Institute |date=13 November 2017 |url=https://www.eesi.org/briefings/view/111317cafe |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{mccormick2017can, author = {McCormick, Robert and West, Brian and Drake, Dean and Varcoe, Andrew}, title = {{Can Fuel Efficiency Standards Be Met Cost-Effectively? | Briefing | EESI}}, institution = {Environmental and Energy Study Institute}, year = {2017}, month = nov, url = {https://www.eesi.org/briefings/view/111317cafe}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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