U.S. Proposal to Freeze Auto Emission Claims Huge Societal Savings

A proposal to freeze U.S. emission rules for cars in 2020 claims the move would slash “societal costs” by about $500 billion through 2029, Bloomberg News says.

But the report also estimates the freeze would result in about 500,000 barrels of greater fuel consumption than if the currently scheduled emission limits are implemented. At current U.S. gasoline prices, 500,000 barrels of fuel would retail for about $22 billion per year.

The $500 billion savings calculated by the proposal compares with a $98 billion benefit estimated by an analysis made during the Obama administration in support of the tougher emission limits.

The proposal now being reviewed by the White House was co-authored by the Environmental Protection Agency and National Highway Traffic Safety Administration.

The regulatory freeze would eliminate the need for technologies that could boost the price of a new vehicle by several thousand dollars, according to the proposal. The resulting savings represent the single largest source of benefit from the proposed freeze, Bloomberg says.

Previous reports say the plan also calculates that abandoning the tougher standards would result in larger but cheaper cars that save about 1,000 lives per year.

The proposal explains that, in a crash, large vehicles generally protect their occupants better than small ones do. The analysis also predicts that lower new-car prices would encourage more owners of older vehicles to replace them with newer, safer models.