AAA cautions against costly CO2 regulations

The Australian Automobile Association (AAA) has called on the federal government to reconsider proposed vehicle emissions regulations, on the grounds such legislation would impose an excessive burden on motorists.

A study by the Centre for International Economics (the CIE) – commissioned by the AAA – has found that vehicles subject to a CO2 emissions standard would cost more to purchase and would not likely deliver Australian buyers the accustomed size, carrying capacity and performance.

"Previous Environment Minister Greg Hunt claimed that while improving fuel efficiency could mean higher upfront costs for car buyers, the average car owner could recover these costs through fuel savings," said AAA Chief Executive Michael Bradley.

"The CIE analysis indicates the modelling upon which this claim relies doesn't fully take into consideration the potential higher costs to consumers of more refined fuels and the loss of vehicle attributes.

"The CIE analysis makes it clear these are real costs that would be paid by consumers, and as such they ought to be considered to ensure Australia arrives at the least-cost and fairest abatement system possible.

"The AAA supports the consideration of a vehicle CO2 emissions standard as part of a package of measures to meet Australia's greenhouse reduction targets. But abatement must be achieved at the lowest cost to the economy and those costs must not fall unfairly on motorists."

Further to the added cost of buying a new, greener car, the motorist may face higher expenditure for fuel specifically refined for combustion in these more advanced engines the AAA suggests.

"Only last week, the AAA released Australia's first Transport Affordability Index, which showed the average Australian family is spending in the order of $17,000 a year to cover its transport needs," Bradley continued.

"Badly designed and implemented regulations could see consumers needlessly and unfairly pay even more of their household budget for transport.

"The AAA believes a range of complementary measures to reduce vehicle emissions and running costs need to also be considered by the Government. These include the abolition of import taxes and restrictions that could help to make newer, cleaner, safer cars more affordable."

Unfortunately, given much of the AAA's lobbying is based on the CIE report, the association has not released the findings for public scrutiny.

Carbon-dioxide (CO2) is a greenhouse gas, which climate scientists blame for the global climate warming since the start of the industrial revolution. It has not previously been the subject of emissions controls in Australia.

In the same press release Bradley delivered a backhander to the government for neglecting to observe anomalies in vehicle emissions reporting.

"It is also important to note that the Government cannot regulate what it currently cannot measure. Before any regulation of emissions is introduced, the Government needs to fulfil its obligation to measure actual vehicle emissions in Australia and not simply rely on laboratory testing performed in other nations and in some cases, by car manufacturers."

The AAA announced earlier this month that it would undertake its own testing of vehicle emissions, with the assistance of a research consultancy, presumably to shame the government into taking action in the aftermath of Volkswagen's 'Dieselgate' scandal.

"The Volkswagen scandal has highlighted the need for far greater scrutiny of laboratory testing, which is why the AAA continues to advocate for local, independent emissions testing that can determine the difference between real-world and laboratory results," he said.

In recent times the AAA and Volkswagen have engaged in an open war of words, each salvo delivered by press release. The AAA last year instructed all its affiliated state motoring associations that Volkswagen products would not be considered for a national award program in light of the Dieselgate saga.

Volkswagen responded to that recently, announcing it would not supply its vehicles for evaluation by the AAA, its member organisations or the judging panel. The AAA countered with a blistering denouncement of Volkswagen and a demand for independent emissions testing in the real world.

The government is yet to reply formally to the AAA's lobbying...