Economists say flawed calculations nullify claimed savings from vehicle emissions rollback
A new study finds the administration's reasoning for eliminating vehicle emission standards was mathematically unsound, and correcting the errors would turn projected savings into a cost of hundreds of billions of dollars.
A team of researchers from Yale, MIT, the University of Pennsylvania and other institutions analyzed the EPA’s justification for scrapping federal vehicle greenhouse-gas standards under the Trump administration. They identified key errors, including undervaluing fuel-savings benefits, misestimating the price of efficiency technology and flawed mileage assumptions. Correcting these mistakes would reduce the claimed $600-$790 billion savings by $1.5 trillion, resulting in an estimated $670 billion cost to the United States.
The authors contend that even without considering environmental benefits, the economic case for the rollback collapses. EPA officials responded that their analysis remains valid and reflects updated market conditions. The findings appeared Thursday in the journal Science.
Why it matters
The analysis suggests the emissions rollback could cost taxpayers billions, challenging the claimed consumer benefits.
In this story
