EPA mileage tests are done on recently driven vehicles, under near-deal weather conditions on closed courses, using a sampling of manufacturer-selected vehicles. This reduces engine, transmission and chassis warm-up times, and produces mpg figures that are as relevant to typical vehicles as NASCAR lap times.
Your short trip driving is considered "severe" use. With the Element being 3500# and having a 4-banger, the friction and inertia including tire rolling resistance during warm-up is substantial. I've notice that it takes a couple of miles of driving just for my brakes to polish off overnight rotor rust and the pads to fully retract. When I drive longer, multi-day trips on interstates, where I'm between 55 and 65 mph most of the time, my mpg
dramatically improves, rising above 25 mpg (corrected odometer).
Your mpg will improve slightly as your engine is "broken in". You can help it along by taking some longer trips at higher speeds and varying your speed as the Owners Manual recommends. After break-in, things that can help mpg would include switching to synthetic oil, larger and/or harder highway/touring tires, raising tire inflation and lightening the vehicle by not carrying unneeded cargo, like the rear seats, and keeping the body clear of deflectors, bully bars, roof bars, etc, and predictive, not "granny", driving".
If you want to prong the life of your Element, i suggest that you be extra aggressive about oil changes and maintenance, (not waiting for the maintenance minder to alert you), and keeping the body - top and bottom- as clean as possible.