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Beginning of Paper
Corporate Average Fuel Economy

The foreshadowed Market Failures of the mid 1970's gave way to Corporate Average Fuel Economy, regulation which would call for new standards in automobile fuel efficiency. The market failures hinged on a number of outside variables which could have had a drastic effect on domestic markets. Resource Scarcity drove the American public to call for a more efficient me ....

Middle of Paper
.... turned out to be a flop. The variables on which it was based, turned out to be almost exactly opposite. Lower Gas Prices have a) caused the public to simply use more fuel, b) drive more frequently due to less fuel consumption and c) look beyond fuel economy when in the market for a new vehicle. Quality Depletion of the total domestic car fleet due to special attention to only the fuel economy while ignoring: 1) performance, 2) acceleration and 3) handling. ....

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