the government based on relative fuel intensity may be the most promis-
ing strategy.
Feebate programs, where fees are imposed on purchasers of vehicles
that fail to meet a set fuel economy or emissions standard and cash rewards
or rebates are granted for the purchase of vehicles that exceed the standard,
are under active consideration in Canada but are not presently imposed any-
where in the world (Dumas, 2005). Factors influencing the design of a
feebate program include price elasticities, the cost of technologies, feebate
structure, selection of the standard, and the quality and availability of fuel
economy data. Feebates can result in significant reductions in fuel con-
sumption but only with a large transfer of payments between consumers or
between customers and governments. There are many variations to such a
program, including imposing the charges only on the purchase of vehicles
with very high or low fuel efficiency. The efficacy and acceptability of such
a program varies depending on whether it is specific to a state or province
or encompasses an entire country or group of countries.
Despite the plethora of potential policy approaches, such as those high-
lighted here, policy makers in the United States have, to date, largely
ignored the transportation sector in developing a national climate change
strategy. National policy on transportation CO
2
is characterized by resist-
ance to increases on fuel economy standards, gas taxes, energy taxes, and
carbon-reduction requirements. The only progress nationally in the United
States at this time is a minor increase in fuel economy standards for light-
duty trucks. Miller argued that policy in this area is highly influenced by
party politics, leading to a probable stalemate in the near future (Miller,
2005). While the U.S. Congressional Budget Office prefers gasoline taxes
over corporate average fuel economy (CAFE) standards, neither is receiving
much political support.
The Promise of Integrated Transportation Solutions
A recurring theme of the Asilomar Conference was the need for more and
stronger collaborations and partnerships—between vehicle and fuel suppli-
ers, emerging and economically advanced nations, and the many public and
private entities investing in and managing transport services.
Vehicle and System Efficiency: A New Partnership
The most promising strategies to reduce transportation-related GHG emis-
sions in the highly motorized societies of North America and Europe are
those based on technology improvement and new fuels. This is true not just
for passenger vehicles but also for large trucks. These advances increasingly
require partnerships between fuel and vehicle suppliers, with investments
in new and improved engines linked to new and improved fuels. Examples
include diesel engines with low-sulfur diesel fuel, biofuels with flexible fuel
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