CAFE Standards 2002

CAFE Standards 2002

By
David Baron
2002|Case No.P43

In 2002 Senators John Kerry and John McCain introduced legislation to increase the CAFE standard for the light vehicle fleet by 40 percent. The legislation was motivated by security concerns in the aftermath of September 11, concerns about global climate change, and a decrease on the fuel economy of the new vehicle fleet as a result of the growth in demand for SUVs and light trucks. The case provides information on the history of CAFE, fuel economy, technology, and market developments. The case focuses on the Ford Motor Company and asks for a nonmarket and integrated strategy for addressing the legislative threat. The case also discusses a private politics challenge to Ford by the Sierra Club.

Learning Objective
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