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American Focus > Blog > Economy > California’s New Fuel Standards Hurt the Poor, with Little Environment Benefit
Economy

California’s New Fuel Standards Hurt the Poor, with Little Environment Benefit

Last updated: February 12, 2025 10:28 am
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California’s New Fuel Standards Hurt the Poor, with Little Environment Benefit
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California is currently facing a crisis on multiple fronts – from raging wildfires to soaring energy costs. The state government’s push for households to transition to electric power comes at a time when electricity prices are skyrocketing. This has put a significant strain on families, especially those with lower incomes. Adding to the burden is the fact that Californians are already paying the highest gasoline prices in the country, which are 30 to 50% above the national average.

One of the factors contributing to the high gasoline prices is the California Air Resources Board (CARB) and its Low-Carbon Fuel Standards (LCFS). While the Board aims to reduce air pollutants and achieve carbon neutrality by 2045, the implementation of these standards has had a disproportionate impact on low-income households. These families spend a significant portion of their income on gasoline, and the increased costs are making it even harder for them to make ends meet.

CARB projects that its fuel standards will lead to a 90% reduction in carbon intensity of transportation fuels by 2045, resulting in over 500 million metric tons of CO2 emissions being eliminated. However, when compared to global emissions, particularly those of China, the impact of California’s efforts seems minimal. In fact, the emissions from California fires in 2020 alone negated years of progress in reducing carbon dioxide emissions.

Authors David R. Henderson and Francois Melese have highlighted the negative effects of California’s fuel standards on the poor, with little environmental benefit to show for it. Their article, published in the Independent Institute, raises important questions about the trade-offs involved in the state’s push for electrification and carbon neutrality.

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To read the full article by Henderson and Melese, visit the Independent Institute website. The insights provided in their analysis shed light on the challenges California faces in balancing environmental goals with economic realities.

TAGGED:benefitCaliforniasEnvironmentFuelHurtpoorstandards
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