Obama’s Proposed Increased Fuel Efficiency Will Cost Extra $1,300 Per Vehicle

President Barack Obama outlined Tuesday the nation's first comprehensive effort to curb vehicle emissions while cutting dependence on imported oil, calling the plan an historic turning point toward a "clean-energy economy." While the new fuel and emission standards for cars and trucks will save billions of barrels of oil, they are expected to cost consumers an extra $1,300 per vehicle by the time the plan is complete in 2016. Obama said the fuel cost savings would offset the higher price of vehicles in three years. While requiring that vehicle carbon dioxide emissions be reduced by about one-third by the target date, the plan requires the auto industry to be building vehicles that average 35.5 miles per gallon. The plan also would effectively end a feud between automakers and statehouses over emission standards - with the states coming out on top but the automakers getting the single national standard they've been seeking and more time to make the changes...AP

Even if you accept this as good public policy, the federales always underestimate costs and overestimate benefits. So expect to pay more and receive less.