> If consumers wanted smaller cars, they would buy more of them. A car is still much less expensive than a larger vehicle. The data clearly indicates people want bigger vehicles.

That's true to a point. In the US there are regulatory loopholes for SUVs, so that's impacting what vehicles people choose.

I agree that fuel efficiency standards are pretty silly. Especially CAFE standards. They should just tax CO2 emissions (or fuel) directly, and let the market sort it out.

Perhaps also have a tax on the weight of the vehicle, because that's a negative externality: heavier cars are worse for other people in a crash.

But the US is a country that has effectively legalised running over cyclists, so I don't have much hope for them. See https://www.nytimes.com/2013/11/10/opinion/sunday/is-it-ok-t...