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Extra info for OECD Economic Surveys: United States 2010
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2. Fuel savings calculated using pre-tax fuel prices. Source: US Environmental Protection Agency (2010b). The House of Representatives has passed legislation (The American Clean Energy and Security Act of 2009, ACES) containing a cap-and-trade programme covering 85% of US emissions by 2016 that would deliver the GHG-emission reductions signalled in Copenhagen (17% below the 2005 level by 2020 and 83% below by 2050), and the Senate introduced a new climate bill (The American Power Act, sponsored by Senators Kerry and Lieberman) in May 2010 that is broadly similar, although it has not been passed owing to insufficient support in the Senate.
Bollen et al. (2008; 2009) estimate that health co-benefits from reduced local air pollution in the United States could cover a sizeable part of mitigation costs. By reducing the fossil-fuel intensity of both the US and other economies, policies to reduce GHG emissions could also enhance energy and national security. The most cost-effective way to reduce GHG emissions is to price them and support emission-reducing innovation Private production and consumption decisions do not fully take into account the social costs of GHG emissions.
Even though public-mass-transit investment and usage have been increasing in the United States, development is still limited compared to European countries, contributing to transport emissions. Other factors that contribute to relatively high transport emissions are the low population density and consequent long distances travelled per capita and the low mileage performance of the vehicle fleet, although US fuel-economy standards are being raised (see below). Low fuel taxes relative to EU27 + EFTA countries may contribute to higher annual vehicle miles travelled and preferences for vehicles with low fuel economy (Figure 14).