The demand model used in this study indicated that individual
consumers prefer vehicle acceleration over fuel economy performance.
However, as a society, the same individuals may place
value on environmental protection, human health, and sustainability
that is not captured in the market of individual decisions. For
example, while increased CAFE penalties resulted in decreased
costs to producers and consumers relative to other fuel economy
policies, they also result in smaller, lower-performance vehicles,
which are less preferred by individual consumers. Naturally, it
will be necessary to balance social versus individual preferences.
To quote from the National Academy of Sciences report @11#:
‘‘Selection of fuel economy targets will require uncertain and dif-
ficult trade-offs among environmental benefits, vehicle safety,
cost, oil import dependence, and consumer preferences. The committee
believes that these trade-offs rightfully reside with elected
officials