Do Higher Cafe Standards Create Jobs?

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(Photo (cc) by Flickr user KSGR)

WNYC's Economic Editor, Charlie Herman, has been examining where jobs could come from in this economy, and on the Takeaway today he quotes Klaus Kleinfeld, the head of Alcoa, as saying (about a minute and a half in):

"Suddenly the automakers are saying we have to make our cars more fuel efficient so they look for lightweighting  and they don't want to compromise safety, so then they look at what is the materials they should to choose and they chose aluminum."

Herman says Alcoa is expanding a factory, spending $300 million, and creating 300 jobs.

He says the cafe standards are a "requirement the government is putting on the auto industry that is having trickle down effect.  It will  also make US cars more competitive around the globe, where fuel efficient cars are more in demand."

Full audio here: