CAFE Capitalism

Big oil thinks you are not paying attention. They're probably right. CAFE stands for Corporate Average Fuel Economy. When it was enacted by Congress in the 1970s, American consumers were reeling from high energy prices and fuel shortages. The climate emergency was nowhere in sight. Since then Congress has strengthened CAFE in hopes of nudging big oil and big transportation in the right direction. But why not let the market dictate which direction is the right one? And it's here that you need to pay attention.

Let us say consumers enjoyed a wide variety of choices to move from one place to another: trains, buses, trams, bicycles, boats, airplanes. And let us say that these vehicles were driven by a wide variety of alternative fuels. By all means, then, let the market dictate which direction is the right one.

But now let us say that one of the suppliers of fuels had gained a lock on how consumers would power their transportation needs. And let us say that this same supplier had ensured that the only way most consumers could travel is along streets and highways uniquely crafted for automobiles. And let us say that this supplier "donated" $153M to your elected officials to help them write legislation favoring renewable and fossil fuels, trains or automobiles, roads, highways, or rails. Obviously you would tell those suppliers: Hey! That's not fair! Let the free market dictate which direction is the right one.

Yes, weakening CAFE standards will hasten catastrophic climate change ("Republicans aim to Defang Rules on Fuel Economy," NYT, June 27, 2025, p. 1). But if you really thought Republicans care at all about you or your children's or the planet's future, you are worse off than I thought.

What is clear about this rule change is that they also do not care about free markets. Their eyes are on the real prize. Not the earth, not the market, not you or your children. $153M. Are you paying attention? Didn't think so.