Cafe Analysis

CAFE Standards paper: Address the following questions in your written case analysis to ensure you have included all the relevant areas in inquiry. What are the major costs and benefits of the proposed rule? Which are private (affecting decision-makers) and which are external (borne by other parties)? Which factors explain the fact that current fuel efficiency of vehicles is substantially less than what the NHTSA’s estimates of costs and benefits indicate would be in the private interests of vehicle buyers and manufacturers? What policy alternatives are there to CAFE standards? What are their relative pros and cons?

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