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

by Marlo Lewis on December 28, 2010

in Blog

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.

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