Source: Foundation for Economic Education
by Ninos P Malek
“On August 17, the California Energy Commission (CEC) approved the nation’s first energy-efficiency standards for replacement tires. Beginning in 2029, replacement tires sold for passenger vehicles and light-duty trucks in California will have to meet minimum standards for ‘rolling resistance’—the force that resists a tire as it rolls along the road. … The CEC estimates that under the first phase of the regulation, a set of four tires will cost consumers about $6 more while saving the average driver approximately $85 in fuel costs over the life of the tires. … Assuming those estimates are accurate, most people would probably say, ‘Sounds like a pretty good deal.’ But that raises an obvious economic question: If these tires are such a good deal for consumers, why does the government need to force people to buy them?” (09/01/26)