Question

The corporate average fuel economy (CAFE) standard for mileage is currently 26.5 miles per gallon of gasoline (the defender) for passenger cars. To conserve fuel and reduce air pollution, suppose the u.s Congress sets the CAFE standard at 35 miles per gallon(the challenger) in 2010. An auto will emit on average 0.8 pounds of carbon dioxide(c02) per mile driven at 26.5 miles per gallon, and will emit 0.65 pounds of CO2 per mile driven at 35 miles per gallon.

A. how much fuel and carbon dioxide would be saved over the lifetime of a passenger car with new standard? Assume car will be driven 99,000miles over its lifetime.

b. if CO2 cost .02 lb to capture and sequester, what penalty does this take place on the defender? Should this penalty affect the CAFE replacement analysis?

Answer 1

Solution: Given CAFE milage = 26.5 miles per gallon of gasoline Us Congress sets Standard CAFE - 35 miles per gallon Average emit = 0.8 pounds of CO2 permile driven = 26. smiles pergallon and emit = 0.65pounds at 35 miles (A) fuel and co2 saved over lifetime of passengers Karo Afsuring car will be driven = 99000 miles New CAFE Current CAFE 26.5 35 milieage 0.65 Co2 emission 0.8

o arment cafe: 99000 miles -= 3735.849 gallons 26.5 miles pergallon Newcafe: 99000 miles -= 2828.571 gallons 35miles per gallon Thus new foel Savings = 3735.849-2828.57) = 907 278 gallons over life of Car co2 emission Savedis: - for 99000 miles over its lifetime = 692000 miles) (0.8-0.65) 16 per mile = (14850lb saved. * If coz cost $0.02 16 then penalty sa ; → Penalty CP) = (0.02) (14850) -18297 penalty on defender for not saving coz is p = $297/