NEWS California And Automakers Strike Deal To Lower Emissions

The land­mark deal worked out between Cal­i­for­nia and four major automak­ers for more fuel effi­cient cars isn’t just good for the envi­ron­ment — it could also be good for car com­pa­nies’ bot­tom lines.

For the audio: click here.

Screen Shot 2019-07-25 at 8.00.32 PM

Two sets of rules for vehi­cle emis­sions — one fed­eral and one for Cal­i­for­nia — would be bad for automak­ers, accord­ing to Dan Kam­men, chair of the Energy and Resources Group at UC Berke­ley.

Set­ting stan­dards for less-​​efficient cars and try­ing to keep a pro­duc­tion line open for those, while the global trends are going the other direc­tion, is really a very costly move for the auto man­u­fac­turer,” he told KCBS Radio.

He says that’s why Ford, Honda, Volk­swa­gen and BMW have reached an agree­ment with the state to pro­duce more fuel effi­cient cars, even as the Trump Admin­is­tra­tion pushes ahead with a roll­back of mileage standards.

Screen Shot 2019-07-25 at 7.56.17 PM

Econ­o­mist James Sallee, also at UC Berke­ley, says auto mak­ers see the writ­ing on the wall.

Regard­less of how they view envi­ron­men­tal issues inter­nally them­selves or whether they’re will­ing to put any value on it, I think they see a cer­tain inevitabil­ity that the trans­porta­tion sec­tor is chang­ing and that they’d like that change to kind of pre­dictable, grad­ual and con­sis­tent in order to let them make their invest­ment choices wisely,” Sallee told KCBS Radio.

The Trump admin­is­tra­tion, which will likely chal­lenge this deal, has argued that relax­ing emis­sions stan­dards would lower the sticker price of vehi­cles and encour­age con­sumers to buy newer, safer cars.

Browse News

Main Menu

Energy & Resources Group
310 Barrows Hall
University of California
Berkeley, CA 94720-3050
Phone: (510) 642-1640
Fax: (510) 642-1085


  • Open the Main Menu
  • People at RAEL

  • Open the Main Menu