The Ministry in charge of energy conservation established standards of energy consumption for the sector. The Chinese government has also established fees and tax rebate system for low energy buildings to encourage constructions. Under the feebate system, one either pays a fee or receives a rebate when one connects to electric system or gas. The amount received or paid relies on the size of the subscription of the efficiency of the building. Efficient buildings receive a rebate while inefficient buildings pay a fee. The system is politically attractive and cost neutral. This model is workable for the United States, and can help in conserving energy in the construction sector. it is a desirable approach for the United States due to the energy conservation benefits, its political desirability, and cost neutrality.
The Corporate Average Fuel Economy (CAFE) improves cars’ average fuel economy. It has been a successful program to a greater extent because some of its auto manufacturing set goals has been met. CAF has managed to regulate fuel economy with its strict fuel economy standards. The major purpose of CAF is to reduce consumption of energy through increasing the cars’ fuel economy. CAF in collaboration with NHTSA improves the country’s energy security.
Compared to a tax added gasoline purchased at the pump, CAF standards are still effective. This is because the fuel economy rises as CAF standards increase. However, using tax added gasoline purchased at the pump would mean that the prices of gasoline increase. This will, in the long-run, increase the average fuel economy of the passenger car fleet. Due to the energy consumption, the increasing fuel economy would drive the gasoline price down. Therefore, CAF standards prevail over tax added gasoline purchased at the pumps.
CAFÉ standards, Wikipedia, http://en.wikipedia.org/wiki/Corporate_Average_Fuel_Economy http://www.nytimes.com/2011/07/04/business/energy-environment/04mileage.html