Why We Don't Need To Regulate Fuel Efficiency

Economists generally argue that if an activity like pollution has an externality, the optimal way to deal with it is via direct taxation of the activity. This is why economists often support dealing with the pollution and other externalities of driving a car via a gasoline tax. Fuel economy standards and other regulatory kludges are unnecessary and inefficient in comparison.

Disappointed With Electric Cars, Automakers Are Making Bad Bet On Fuel Cells

Well, we’re hearing it again: the hydrogen fuel cell represents the future of automotive transportation. Japanese and German automakers have formed new alliances to develop fuel cell technology, and the father of the Prius, Toyota’s Takeshi Uchiyamada, is saying that it holds more promise than battery electric vehicles, which he says haven’t worked out to be “a viable replacement” for gas-powered cars.