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Perverse Incentives of Gas Mileage Regulations

CAFE Standards Were Supposed to Save Consumers Money at the Pump But Created a Litany of Second-Order Problems

Richard Morrison's avatar
Richard Morrison
Jan 12, 2026
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This post is based, in part, on the news segment I recorded for Episode 155 of the Free the Economy podcast.

In case you missed it at the end of the year, the Cato Institute dropped a great podcast episode with Vice President for Public Affairs Chad Davis, Legal Fellow Brent Skorup, and Senior Fellow Peter Van Doren on mileage regulations for new cars, t…

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