One example of regulation in the automobile industry is the Corporate Average Fuel Economy (CAFE) standards. These regulations set targets for the average fuel efficiency of vehicles produced by manufacturers, aiming to reduce greenhouse gas emissions and dependence on fossil fuels. Manufacturers must meet these standards by producing vehicles with higher fuel efficiency or by incorporating alternative energy technologies. CAFE standards are enforced by government agencies like the Environmental Protection Agency (EPA) in the United States, influencing vehicle design and production practices.
