US report finds that auto makers exaggerate compliance costs
Sat 09 September 2006
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The auto industry has historically overestimated the costs of complying with environmental regulations by a factor of about 2 to 10 times the actual costs according to a recent report from the US-based Natural Resource Defense Council (NRDC).
The report, by researchers Roland Hwang of NRDC and Matt Peak of CALSTART, says that even regulators typically overestimate compliance costs by 1 to 2 times.
The report concludes that: "A primary reason for regulator cost overestimates is the role of unanticipated technological innovation which has dramatically lowered the actual compliance costs in many instances."
The researchers say that the past four decades of California leadership in automobile pollution control also strongly suggests that the California CO2 standards will have a national and, probably, even global impact.
The researchers reviewed previous estimates of compliance costs with environmental regulation since 1975.
Related Links
NRDC website
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