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Author: CoyoteMoney One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 701  
Subject: Re: Ah, warmer weather! Date: 4/25/2002 2:29 PM
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Great new board!

On trucks & SUVs vs the CAFE standards. CAFE was just Congress little exercise in putting the problem in someone else's lap. It only works as long as the smaller, lighter, lower performing fleet that automakers are forced to build meets consumer demand. The mass movement into larger heavier vehicles demonstrates that consumer demand is pretty well saturated for smaller, lighter, lower performing vehicles.

If Congress included some real leaders they'd amend the tax laws to penalize vehicles by weight (rather than $ cost which the current excise tax does) and tax all fuels by carbon content per ton with no exemptions. The market would then begin to reflect the real trade-offs between the our vehicles preferences and the energy dependence and environmental costs they create.

In that sort of market, hybrid and even all-electric vehicles could rapidly become more competitive.

Food for thought.

CoyoteMoney
We're investors, not cheerleaders!
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