Joined by Albuquerque Mayor Martin Chavez, Environment New Mexico Research & Policy Center released a report outlining the economic benefits of a Mayor-backed Clean Cars Program that would reduce air pollution and global warming emissions from new vehicles sold in the state. The report found that New Mexicans could stand to save $623 million annually at the gas pump as a result of the program, which would help to reduce New Mexico’s dependence on oil while keeping more money in the local economy and creating jobs.
The report, entitled Dollars and Sense: The Economic Benefits of the Clean Cars Program in New Mexico, outlines the economic impacts of the program for consumers, manufacturers, dealers and the state’s economy.
The release of this new report happens just weeks before joint hearings before the Albuquerque-Bernalillo Air Quality Control Board and state-wide Environmental Improvement Board, scheduled for November 26-28 in Albuquerque. The boards will determine whether Albuquerque and New Mexico will join 12 other states in adopting these more protective standards. The Albuquerque Environmental Health Department’s Air Quality Division has drafted regulations and requested a hearing to vote on the matter.
Environment New Mexico also delivered approximately 3,000 postcards to the Mayor in recognition of his commitment to address global warming and for his support of the Clean Car standards in Albuquerque.
“There is broad public support for taking decisive action to address global warming. The Clean Cars Program is a good reminder that many of the solutions to global warming also provide net economic benefits to our citizens,” said Mayor Martin Chavez. “Cars and trucks are the largest source of global warming emissions in the City of Albuquerque. If we bring cleaner cars to our roads, we can make a big dent in these emissions, while saving people money at the pump.”
“We applaud the Mayor’s work on global warming and his support for this important program. Albuquerque should continue to be a leader in tackling global warming by bringing the Clean Cars program to our roads,” said Environment New Mexico advocate Lauren Ketcham. T
he Clean Cars program, initially started in California under special authority granted through the Clean Air Act, has been adopted by twelve states: Maine, California, Vermont, Rhode Island, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Maryland, Washington and Oregon. Other states are currently in the process of adopting the standards, including Arizona.
The transportation sector is the second largest source of carbon dioxide pollution in the state, making up nearly one-quarter of the state’s emissions in 2000.
Global warming, left unchecked, could substantially impact the frequency of heat waves, increase the risk of wildfires in the state and decrease mountain snowpacks and available water supplies.
Cleaner cars can help to reduce the state’s global warming and air pollution emissions.
First, the low emission vehicle (LEV II) program sets strict standards for traditional air pollutants. Under the program, volatile organic compounds and nitrogen oxide would be cut by 5 percent and 11 percent respectively. Second, the global warming pollution standards set a fleet-wide average global warming emission standard that the major automakers need to achieve. By 2016, new cars would emit 34 percent less global warming gases, while light-duty trucks would produce 25 percent less. Third, the zero emission vehicle (ZEV) program helps to drive further technological development by requiring automakers to invest in researching and producing advanced-technology vehicles.
Key findings of the report include:
Cleaner cars are a good deal for New Mexico’s drivers. Cleaner cars that incorporate advanced-technology components have reduced operating costs, saving drivers money at the pump. Cleaner cars begin to pay for themselves immediately.
- As a result of anticipated oil savings, New Mexico consumers could $623 million annually under the Clean Cars Program.
- Assuming fuel costs of $3 per gallon, consumers will experience a net savings of $245 to $320 per year during the life of a 5 year loan and $490 and $560 per year when the loan is paid off. - Adopting the Clean Cars Program would mean that New Mexicans get better choices and have more access to cleaner, conventional cars and advanced-technology vehicles.
Manufacturers have historically overestimated the price of producing cleaner vehicles to comply with stronger emission standards.
- Auto industry costs estimates for the 1970s catalytic converter requirements were 2 times higher than the actual cost. In the 1990s, Sierra Research, who provided cost analyses for the auto industry, estimated costs that were 10 times higher than the actual cost of compliance for the original LEV program.
Because drivers will be spending less at the pump—money that largely leaves the local economy and is sent out of state or overseas—the state’s economy will benefit as people have more money to spend on other commodities and in their local stores.
- The New Mexico Climate Change Advisory Group found that the program would actually save money for the state. Each ton of carbon dioxide equivalent reduced would save the state $117, making the Clean Cars Program the most cost effective of the 69 policy options that the state analyzed to reduce global warming emissions.
- Because the program would also reduce the air pollution that affects rates of asthma, cancer and heart disease, a reduction in state medical costs could also be expected. Health care costs from ozone, smog and air toxics put a burden on the state health care system. Reducing emissions that trigger asthma attacks and increase cancer will inevitably lead to fewer sick days and reduced health care costs for business and government.
The economic, social and environmental consequences of inaction, or choosing to ignore the threat of global warming, will likely be severe, and outweigh any potential unintended consequences of emission reduction efforts.
- In a time of scientific certainty about the seriousness of global warming and increasingly more frequent debate around policy solutions to global warming that would put a price on carbon, businesses that are dependent on fossil fuels or are heavy emitters find themselves in a riskier and riskier business climate.
- The likely impacts of global warming in New Mexico could significantly impact New Mexico’s economy. For example, warmer winter temperatures would hurt ski resorts and other snow sport industries, which provided a $270 million financial benefit to the state in 2004.
- Acting immediately to reduce greenhouse gas emissions—from the transportation sector and economy-wide—would help us to avoid the costs of inaction.
“The medical costs of asthma, cancer, cardiovascular and respiratory diseases are staggering. We know that ozone, fine particles and toxic air pollution from vehicles contribute significantly to the severity and risk of these diseases,” said Hugh Church, a volunteer and board member with the American Lung Association of New Mexico. “Reducing pollution from cars, trucks and SUVs would reduce medical costs and keep New Mexicans healthier.”
“This report demonstrates that the Clean Cars Program is not only good for the planet and for public health, but is also good for our pocketbooks. New Mexico should be the next state to bring these cleaner cars to its roads,” concluded Ketcham.
ENM-Clean-Cars-Report.pdf