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The auto industry consumes about 70 percent of total petroleum products used in the United States and is a major source of green house gas emissions. With the limited supply of traditional non-renewable energy and a slow growing renewable energy industry, it is important to increase energy efficiency to meet energy demand. Fuel economy, a measure of energy efficiency in automobiles, plays a vital role in reducing the consumption of limited energy and decreasing greenhouse gases. After reviewing past literatures, I find that factors such as, vehicle type, the price of fuel, CAFE standards, the weight of a vehicle, and engine performance have affected fleet fuel economy of automobiles in United States. In order to find the impacts on average fuel economy of passenger cars and light trucks (SUVs), I devise two empirical models. I find that among various attributes, technological factors such as, the weight of a vehicle and performance of a vehicles engine, affects the fuel economy of passenger vehicles significantly.



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