Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

The Cost Of New Speed Limits


Economic Trends

THE COST OF NEW SPEED LIMITS

The effective fuel efficiency of America's motor vehicle fleet is about to take a hit. Oil analyst Adam Sieminski of NatWest Washington Analysis notes that "legislation to abolish the national speed limit for automobiles has gasoline dealers salivating."

The change has already been approved by the Senate. Back in 1987, the national standard was raised from 55 mph to 65 mph in nonmetropolitan areas, and most states have now followed suit. The new law would give them leeway to set limits even higher. A 1984 Transportation Dept. study found that the average car got 34% and 17.7% fewer miles per gallon at 75 mph and 65 mph, respectively, than at 55 mph. Thus, even a small shift to higher speed limits should boost America's gasoline demand.BY GENE KORETZ


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus