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The report critiques proposed rollbacks of US vehicle fuel economy and emissions standards by the DOT and EPA. It argues that the agencies incorrectly assume fuel efficiency improvements necessarily sacrifice vehicle performance, leading to an overestimation of costs to consumers. The author contends that many compliance pathways, such as turbocharging and electrification, can improve both efficiency and performance, and that reducing horsepower can provide public benefits by decreasing accident rates and infrastructure wear.

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  • The DOT and EPA are proposing to scale back or repeal fuel economy and greenhouse gas standards that were finalized in 2024 with calculated net benefits of nearly $175 billion and $2.1 trillion, respectively.
  • The agencies are accused of double-counting costs by assuming manufacturers will pay extra to maintain performance levels while simultaneously counting the alleged loss of performance as a cost to the consumer.
  • The report asserts that the agencies ignore compliance pathways that simultaneously improve fuel economy and performance, such as turbocharging, aerodynamics, and electrification.
  • Reducing vehicle horsepower and acceleration may provide offsetting public benefits, including lower accident rates, reduced insurance losses, and decreased wear on brake pads, tires, and roadways.
  • Modern design and material improvements can enhance safety and performance while increasing fuel efficiency, contradicting the agencies' assumption of a necessary tradeoff.

Cite the original document

APA
Ph.D., E. C. P. P. H. P. J. A. S. P. A. (2026). Under the Hood. Institute for Policy Integrity. https://policyintegrity.org/publications/detail/under-the-hood
Chicago
Ph.D., Erica Chuang, Ph.D., Peter Howard, Ph.D., Jason A. Schwartz, Pello Aspuru,. Under the Hood. Institute for Policy Integrity, 2026. https://policyintegrity.org/publications/detail/under-the-hood.
Wikipedia
{{cite report |last1=Ph.D. |first1=Erica Chuang, Ph.D., Peter Howard, Ph.D., Jason A. Schwartz, Pello Aspuru, |title=Under the Hood |publisher=Institute for Policy Integrity |date=3 February 2026 |url=https://policyintegrity.org/publications/detail/under-the-hood |access-date=23 October 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{phd2026under, author = {Ph.D., Erica Chuang, Ph.D., Peter Howard, Ph.D., Jason A. Schwartz, Pello Aspuru,}, title = {{Under the Hood}}, institution = {Institute for Policy Integrity}, year = {2026}, month = feb, url = {https://policyintegrity.org/publications/detail/under-the-hood}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }

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