The one proven away to improve cars’ fuel economy

With Detroit’s leaders before Congress begging for money, many people have been suggesting that cars with improved fuel economy be part of any bailout.

This is ridiculous, the same way that the Corporate Average Fuel Economy (CAFE) regulations have always been ridiculous. Improved fuel economy cannot effectively be legislated.

Why not? Because this route forces companies to develop cars they don’t want to develop and then find ways to sell them to people who don’t want to buy them.

The only thing that does work: inducing car buyers to demand higher fuel economy. If people decide which car to buy based on fuel economy, then the auto industry will deliver vehicles with higher fuel economy.

The way to create this demand: higher fuel costs through a higher gas tax. This is what has worked for decades in Europe and Japan. And it’s what would work here.

Of course, people who are having trouble making ends meet would be hard-pressed to pay a higher gas tax. But this could be handled through a tax credit.

I’ve long felt that a higher gas tax is the way to go, and the time has come to make it happen.