Blog: Getting Environmental Policy Right

’ve said that the domestic automakers will emerge from their recent financial difficulties in better shape than in recent memory. My point in that blog was that the so-called bailout of the Detroit Three is the news, but it isn’t the key issue. The Detroit Three will restructure and emerge in decent shape.

I’ve also said we should care about what happens after that point. That’s because if there’s one lesson from the problems of the automakers it should be that apparently simple decisions often have lasting negative consequences. What we are deciding now are the policies for 7-20 years from now regarding fuel usage.