In a recent Science Paper, Prof. Bento and co-authors questioned the logic of the administration's proposal for the rollback of the fuel economy standards. The link to the paper is here: https://science.sciencemag.org/content/362/6419/1119.summary

You may also consider watching the companion 2019 testimony in the U.S. house of representatives. The link of Bento's testimony is here: https://priceschool.usc.edu/bento-testifies-at-the-committee-on-oversight-reform/

and the links to the full hearings, including the testimony of former CA governor, Jerry Brown, can be found here: https://oversight.house.gov/legislation/hearings/trump-s-wrong-turn-on-clean-cars-the-effects-of-fuel-efficiency-rollbacks-on

(a)What is the market failure that a fuel economy standard attempts to address?

(b)What are the effects of increased fuel economy standards, and how would you determine the desired level of the standard?

(c)Should CA or the Federal Government regulate fuel economy? Explain your answer

(d)Given the evidence provided in Bento et al. Science paper and his testimony to the house of representatives, why did the administration decided to proceed with the proposed rollback of fuel economy standards? Who are the winners and losers of such proposal?