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CAFE, Gasoline Prices and the Law of Diminishing Returns: A New Agenda for the Midterm Evaluation

EPRINC has just published CAFE, Gasoline Prices and the Law of Diminishing Returns: A New Agenda for the Midterm Evaluation. The paper was authored by EPRINC’s Lucian Pugliaresi and Max Pyziur.

The paper discusses the Corporate Average Fuel Economy (CAFE) Standards program, one of the more important programs in the regulation of transportation fuels. These standards were enacted in 1975 in order to increase fuel efficiency in newly manufactured vehicles, thereby limiting fuel consumption. This mandate requires manufacturers and marketers to assemble vehicles with increasing fuel efficiency performance.

An emerging concern regarding higher CAFE standards is the diminishing returns from higher MPG requirements. The U.S. Energy Information Administration (EIA) has shown that modest improvements in fuel economy in less efficient vehicles produce incrementally greater value than large improvements in more efficient vehicles.

Given the current low-price scenario for transportation fuels that is expected to continue for some time, it is important to assess the cost-effectiveness of the CAFE program relative to this new environment for transportation fuels.

The paper can be found at the following link:

https://eprinc.org/wp-content/uploads/2016/03/CAFE-GasolinePrices-LawOfDiminishingReturns-March2016.pdf

EPRINC has just published CAFE, Gasoline Prices and the Law of Diminishing Returns: A New Agenda for the Midterm Evaluation. The paper was authored by EPRINC’s Lucian Pugliaresi and Max Pyziur.

 

 

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Dominick Blue

Distinguished Fellow

Dominick Blue is a Distinguished Fellow at the Energy Policy Research Foundation (EPRINC), where his research focuses on energy resilience, reliability, and the secure integration of emerging technologies into the power sector. His current work examines the intersection of advanced computing, infrastructure planning, and national energy security.
Dominick’s research portfolio includes analysis of AI and data center electricity demand-forecasting regional load growth, reliability implications, siting dynamics, and market coordination. He also leads studies on grid modernization and energy security, assessing resilience investments, interconnection constraints, and federal–state coordination under higher load scenarios. His additional work explores the revival of the U.S. nuclear sector, financing and licensing pathways for advanced reactors, and rebuilding domestic manufacturing capacity to support the nuclear supply chain.
Further research areas include gas-to-power infrastructure, pipeline and turbine capacity, and the role of gas in maintaining reliability within a diversified generation mix. Across these topics, Dominick focuses on translating complex technical findings into accessible policy insights for decision-makers at DOE, FERC, and state regulatory agencies.
Before joining EPRINC, Dominick held senior leadership roles in infrastructure, technology, and risk management, including Managing Partner and Director of Client Innovation for private investment and global critical infrastructure firms, respectively. A former U.S. Marine Corps Chief Warrant Officer Two in CBRN Defense, he brings a mission-driven perspective to energy resilience and safety. He holds a Masters of Business from the University of Southern California and has completed graduate studies in Computer Science at Georgia Tech, with research interests in AI systems, resilient infrastructure, and energy transition security.