Reducing fuel consumption also cuts carbon dioxide emissions. Between 1995 and 2010, cumulative emissions are reduced by 750-890 million tons. According to AUTO's feebate assessment, consumers fare very well, while the effect on manufacturers is mixed. They pay a little more for efficient vehicles, but fuel savings more than compensate. The model shows that feebates make these technologies more cost-effective.
Manufacturers respond by producing more fuel-efficient vehicles.
The financial effects of feebates are slightly negative for domestic carmakers because foreign firms currently have more fuel-efficient fleets. Initially, this would cause domestic manufacturers to lose roughly a one-percent share of the market. This should improve as U.S. manufacturers respond with better fuel efficiency. Davis notes that the modeling effort involved more than a trillion calculations for each of the six feebate alternatives. More than 80 countries including the U.S. have agreed to cap their greenhouse gas emissions at 1990 levels.