TORONTO -- If the U.S. decides to allow individual states to impose tougher vehicle emission standards than those enforced by the federal government, Canadian consumers could find themselves paying more for vehicles while auto manufacturers and parts makers struggle to supply a fragmented system.

President Barack Obama broke with policy set by his predecessor and ordered the Environmental Protection Agency to re-examine whether California and other states should be allowed to set their own emission standards.

While it remains to be seen whether the agency will agree to the proposal, industry watchers are concerned the divided system that could result will hurt automakers, suppliers and, ultimately, consumers.

"It's going to drive up costs, no ifs, ands or buts," said Pete Mateja, an auto industry specialist at the University of Windsor. He said there's a danger Canada will follow suit by allowing provinces to set their own stringent regulations, as Prime Minister Stephen Harper has said Canada will harmonize its auto emission standards with those of the U.S.

B.C., Quebec and Manitoba already have been working to set their own standards.

"If the U.S. does, there will definitely be pressure on Canada to follow suit, particularly if Harper wants to strengthen our alliance or relationship with the new president in the United States," Mateja said.

Industry analyst Dennis DesRosiers said allowing states such as California to set their own strict emission standards is akin to forcing consumers to buy vehicles they don't actually want, and could spell disaster for the struggling Detroit Three automakers.

"Why would any government force (Detroit automakers) to start building millions of vehicles that consumers, with their pocket book each year, tell them they don't want to buy?" DesRosiers said.

Forcing North American automakers to supply a fragmented system could drive up costs for both assemblers and suppliers -- costs that will ultimately be passed on to consumers.

By KRISTINE OWRAM, THE CANADIAN PRESS