THE CONFLICT BETWEEN ENERGY-CONSERVATION AND ENVIRONMENTAL-POLICY IN THE UNITED-STATES TRANSPORTATION SECTOR

The US Environmental Protection Agency (EPA) implements its policy of pollution control in the transportation sector by specifying the amount of emission permitted per mile driven, (rather than per gallon of fuel burnt). As a result, since car manufacturers have no incentive to reduce emissions below the standard, unless the number of miles travelled declines, vehicle emissions will not drop, no matter how much or how little fuel is burnt. Some of the major fuel conservation policies that have been implemented in the USA have led to increased fuel economy and have resulted in reduced demand for petrol. But they have also indirectly encouraged a greater demand for travel. Consequently, vehicle emissions have increased, even though the amount of fuel consumption has decreased. The net effect is that US energy conservation policy is at loggerheads with pollution control policy, when the two should be going hand in hand. © 1990.