Greene: High gas prices cause incentive to increase fuel economy

David Greene, a corporate fellow at the Center of Transportation Analysis, says that gasoline prices at $4/gallon provides a strong economic incentive to increase fuel economy for both car makers and car buyers. Greene explains that the U.S. needs to extend and simplify incentives for hybrid vehicles in order to raise new vehicle fuel economy and encourage the transition to more efficient electric drive systems. He also says that fiscal incentives for more energy efficient vehicles may be the most efficient policy for encouraging consumers to choose higher fuel economy and for encouraging manufacturers to invent and adopt advanced fuel economy technologies. (0:52)
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