This has weakened the auto industry by making it less responsive to domestic consumers and less competitive worldwide. Even the claim that technology mandates lower the cost of meeting regulatory goals may be illusory because technological capability is fungible. For example, one major car company designed new aerodynamic headlights that would reduce fuel use. The new headlight design allowed the car's trunk space to increase while keeping constant the car's fuel economy. If the new headlight design had been mandated to meet higher regulatory standards, consumer demands for additional trunk space would not have been met.
Regulations restrict options by banning certain activities and raising the costs of others.
Technology increases options by creating new opportunities and lowering the costs of others. Technology mandates seek to square the circle. They seek to expand available choices by encouraging technology but then seek to restrict access to the opportunities thereby created. It is time to abandon this silliness. Regulation is published four times a year by the Cato Institute.