An Examination of the CAFE Standards and Mandatory Environmental Regulations
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The purpose of this study to understand how changes in the Corporate Average Fuel Economy (CAFE) standards affect fuel efficiency of foreign and domestic passenger cars. Method: This project utilizes two interrupted time series regression analyses with comparison groups to test formal hypotheses. This research evaluates longitudinal trends before and after the manipulation of the CAFE standard in order to determine the effect the change has had on the fuel efficiency of both vehicle groups. Results: The interrupted time series regression analyses show that both foreign and domestic fuel economy averages significantly increased following the implementation of the CAFE standards. Additionally, the test show following the stagnation of the policy, there is a significant decrease in the trend lines of both vehicle groups.