A consumer advocacy group released a study Tuesday showing widespread public support for stricter fuel economy rules for automobiles, but failed to answer a key question--whether Americans will actually pay more for gas-sipping cars.
Seventy-eight percent of Americans are on board with the Obama administration's push to raise the average fuel economy of cars and light trucks to 35.5 miles per gallon by 2016, up from about 25 mpg, according to a survey released by the Consumer Federation of America. The group also provided analysis showing that setting higher standards would allow consumers to recoup within four years the added costs of buying a more efficient car through savings at the gas pump.
The CFA said it will include the data in a report this week to environmental and auto regulators, who are seeking public comment on the administration's proposed fuel-economy standards.
"If they don't start producing much more fuel-efficient cars very quickly, certainly the domestic auto makers will in fact not have a sound and bright future," said Mark Cooper, the CFA's research director. "We have to break this cycle."
The CFA said public sentiment justifies even more aggressive government action than the proposed new standards to reduce dependence on foreign oil, help consumers save at the pump and ensure the viability of the auto industry. The group called for a 2020 benchmark of 45 mpg.
But auto makers and industry observers have doubts about the willingness of consumers to pay more for fuel-efficient cars without a spike in gas prices and more government incentives, such as cash rebates.
The administration has said its proposed standards could raise new-vehicle prices by as little as $476 per vehicle in 2012 and as much as $1,091 per vehicle in 2016. Regulators estimate the new standards could help Americans save an estimated $3,000 over the lifetime of a 2016 model-year car through better gas mileage.
The CFA study contained only a handful of questions, and none dealt with how much Americans were willing to pay for more fuel-efficient cars.
The survey of more than 1,000 adult Americans was conducted from Nov. 12-15 by the Opinion Research Corporation International. The margin of error is plus or minus three percentage points.
The study showed widespread support for the inclusion of mileage ratings in car advertisements; for dashboard devices showing gas mileage performance; and for auto dealers to disclose the mileage rating on all used cars.
The study suggested mixed public support for government-backed incentives to buy more fuel-efficient cars. Forty percent of respondents said they approved of a "feebate" system, in which consumers who buy vehicles that get good mileage would be given a subsidy, funded through a fee levied on less fuel-efficient vehicles. Fifty-four percent opposed the idea.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637; joshua.mitchell@dowjones.com