Market Failure or Government Failure? An Update on EPA’s Proposed Diesel Truck Fuel Economy Standards

In two recent blog posts (here and here), I examined EPA’s and the National Highway Traffic Safety Administration’s (NHTSA’s) rationale for establishing first-ever fuel-economy standards for trucks.
 
Today on MasterResource.Org, I provide additional evidence that what the agencies are pleased to call the trucking industry’s “under-investment” in fuel-saving technology is an unintended (although not unforseen) consequence of EPA’s ever-tightening diesel-engine emission standards.
 
In short, I argue that the declining fuel economy of 18-wheelers over the past decade is a case of government failure, not market failure. Conveniently, EPA’s role in holding back heavy-truck fuel economy is never discussed in the agencies’ proposed rule.

To read my column, click here.