Fuel economy standards could have major impact on U.S. economyJune 29, 2012
Report highlights the economy potential of the EPA’s fuel economy standards
A new report from the BlueGreen Alliance, a conglomeration of labor unions and environmental organizations, shows that the fuel economy standards proposed by the Environmental Protection Agency (EPA) in 2011 could have profound economic impact. The EPA proposed the new fuel economy standards in an attempt to promote fuel efficiency and the manufacture of more environmentally friendly vehicles. The report notes that the standards are poised to bring a number of benefits to the U.S., the impact of which could leave a strong impression on the nation’s economy.
570,000 jobs to be created through implementation of new standards
According to the report, the fuel economy standards could create as many as 570,000 jobs between the periods of 2017 and 2030. Approximately 50,000 of these jobs will be in the design, manufacturing and development sectors. Another 500,000 jobs are expected to be created through the $68 billion that consumers are expected to save as the fuel economy standard become enacted. These savings will be enjoyed by businesses, which could go on to hire more personnel.
Standards spark progress in alternative energy technology
The fuel economy standards are also expected to spur technological growth as automakers research and develop new energy systems. The auto industry has shown a great deal of favor for hydrogen fuel cells recently. The fuel economy standards of the U.S., as well as other countries, have put more pressure on automakers to produce more environmentally friendly vehicles. Thus, these automakers have been making aggressive advances in the realm of fuel cell technology in the hopes of complying with government standards.
Fuel economy standards could add $75 billion in annual growth to U.S. economy
The American Council for an Energy-Efficient Economy notes that the fuel economy standards could increase the country’s gross domestic product (GDP) by approximately $75 billion every year. The organization has not factored in the potential economic benefits of reducing pollution, breaking away from foreign sources of fuel, and the export potential of surplus energy.
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