Thursday, April 19, 2007

Poor fuel economy - It's the consumers, stupid?

Yesterday, the director of the EPA's Office of Transportation and Air Quality, Margo Oge, told a crowd at SAE that automakers and energy companies needed to work together to achieve increased fuel economy and reduced emissions. Immediately, disagreement came from every direction, according to the DetroitNews. Is it hydrogen, is it ethanol, is it fuel cells, is it cleaner gasoline, is it hybrid cars?

While there was little consensus on any sort of answer to creating better fuel economy and reducing emissions, there was some consensus regarding consumers and their role in this conundrum. Typically, consumers want the cheapest fuel - regardless of emissions, regardless of foreign oil dependency - and consumers quickly tend to choose performance over fuel economy.

"The challenge we face is that a vast majority of our customers choose fuel based on cost and convenience even over concerns such as greenhouse gases," Shell Oil Vice President for Fuel Development Darran Messem said.

Steve Plotkin, transportation energy analyst at Argonne National Laboratory, added "Americans have chosen performance over efficiency for years," as he suggested that the government will have to mandate some standards.

I say forget mandates, let's do a gas tax. It makes consumers take action that will require a fuel economy-driven reaction from automakers. Ultimately, if consumers aren't part of the solution, then the problem will only get bigger.

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