Aaron's post on CAFE's side effects notes that the rise of the SUV can be attributed - at least in part - to CAFE. CAFE has other side effects. The downsizing of cars to increase gas mileage has decreased safety. And Detroit's efforts to comply have hit the bottom line. In order to sell larger vehicles that get lower gas mileage, Detroit (particularly GM) lowered the prices of small cars. The result - GM loses $2,000 per small car it sells.

These side effects highlight the stupidity of the CAFE standards. In any event, we already have a perfect mechanism for conserving gasoline. It's called a price. As gasoline prices rise, the demand for fuel efficient vehicles increases. Witness the success of this ugly customer. If people are willing to buy something that unattractive (and the dash on this monster is far uglier than the exterior), it looks like we really don't need the government's help to purchase more efficient cars.