The term Chelsea tractor refers to the large 4x4's which are used around the cities and towns, these vehicles are now more popular than ever. As stated by the BBC
"Last year some 187,000 were sold compared with 80,000 a decade before accounting for almost 8%, or one in every fifteen, of all cars sold." This shows a growing trend in the popularity of these types of vehicles, many people use them for the school run due to the safety aspect of the cars, many just like to show off their wealth and have the "big car".
The problem occurs when many people drive these vehicles around town and in the inner cities, as they cause congestion and produce more carbon dioxide than other cars. Many people believe that in these circumstances the "Chelsea tractor" should be taxed more than other vehicles due to their size and emissions factor. Many people agree but some do not see why they should pay more, the minority of so called "Chelsea tractors" are used in the country by people who use them for the purpose of their design and these people feel they would be being penalised for owning a working vehicle.
Many environmentalists believe that taxing these Chelsea tractors' higher will stop people from buying them, but the question comes where to tax these vehicles more, the suppliers or consumers. If suppliers are taxed this will increase the price of the cars at the same time driving some consumers away, inversely the substitutes smaller cars' would become more desirable. As Fig. 1 shows if a higher tax was put directly on the production of 4x4's the cost of production would increase, thus the supply line would shift to the right making a market equilibrium shift from what it previously was. The problem with this is that if the car manufacturers are taxed higher the consumer may just budget more as once purchased there are no other costs associated with the bigger vehicle. Obviously the extra cost will put a minority of consumers off of the prospect of buying the 4x4 even if the usage was for the designed purpose.
If tax was raised on the consumer of these large 4x4s (through road tax) then consumers may be put off due to more money flowing out each 6 months or year. Fig. 2 shows how demand would be affected by the higher tax introduced demand would fall, the substitute smaller cars demand would increase due to opportunity cost, the 4x4 would be sacrificed to enable the consumer to save money.
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Pollution is a major problem for all of us. People need to recognize this situation so we can start making a difference to this problem. In order to start making a difference, the federal government should increase gasoline tax by one dollar a gallon. Fifty percent of this dollar will go towards public transportation, since passenger cars and trucks are a major contribution towards air pollution, according to the United States Environmental Protection Agency, E.P.A (10/4, http://www.epa.gov/autoemissions/emsns.html). Due to the expected increase after this is put forth, the remaining fifty percent of the dollar will go towards safety on these transits. When public transportation increases, air pollution will decrease, which will lessen the harmful health risks towards the environment.
Purchasing a car is one of the biggest and most important decisions that someone will make during their lifetime. Over the past several years, the prices of a vehicle have increased significantly due to the rise of inflation. Economists compare averages of vehicles to calculate and determine the cost of every vehicle that ends up on the car lot. To determine the cost they interpret all the above information and include everything from the cost of making the vehicle to the time of selling it. In the long run, the demand for vehicles is inelastic because they become a necessity for many people. However, in the short run, the demand is elastic because the purchase of a new vehicle can be put off for a while.
Since the early 1990s, the car market has become saturated with sport utility vehicles. While SUV’s have been enthusiastically received by a wide spectrum of the demographic – everyone from teenagers to soccer moms -- not all are excited by its arrival. Some of the current complaints with SUVs have to do with their ridiculous size and relative fuel inefficiency. Others criticize the vehicles as being unsafe, and certainly unnecessary, for the tasks for which they are commonly used. But even with the recent campaigns to educate the public on the possible physical and environmental risks posed by the automobiles, SUV purchases continue to be on the rise. Indeed, with car sales on the decline, and the SUV being seen as a possible savior -- or at least band-aid -- for the struggling motor industry, any movement to ban SUVs in the near future is unlikely.
Every gallon of gasoline saved was important to the war effort on both sides. Germany took advantage of the use of electric vehicles and promoted their use by making them tax-exempt. They had over 27,000 electric vehicles in service. In England, some realized that if electric vehicles could replace even more gasoline powered cars in the transport of everyday items, it might free up gallons of gasoline each year that could be directed to military needs. Air pollution caused by gasoline engines was beginning to be of concern and a number of small firms were set up to try and meet what was seen to be a new demand. Most vehicles produced were conversions of conventional mass produced cars. A serious attempt to produce a car suitable for urban uses was made by the Enfield Company in England in 1966. In Fig. 3, the Enfield 8000 electric car was produced and
The author proposes different partial solutions for the "oil problem": a surtax on gasoline consumption, development of mass transport and alternative energy sources, fuel efficiency. In the actual context, these propositions are more or less wishful thinking. A complete change of mind will only arrive when the oil price will reach astronomical heights and when all cheap oil sources will be dried up.
Automobiles and its related manufacturing contribute to the degradation of the environment causing great concerns from consumers, governments, policy makers and environmentalists, regarding the economy and global warming. This resulted in market changes, due to new environmental laws, legislations, standards, product requirements and consumer wants. The gasoline engine produces emissions that are deadly for the environment, hence the big race by the automobile producers to develop an efficient alternative fuel/energy for powering its vehicles. Deloite (2014) ‘In 2012, new Corporate Average Fuel Economy (CAFE) standards were released in the U.S. that requires automakers to raise the average fuel efficiency of new cars and trucks to 54.5 MPG by 2025.’ (“Global Automotive Consumer Study”, 2014, p.4) The industry is engaged in research and development to develop more efficient internal combustion engines, electric vehicles (EVs), plug-in hybrids, and vehicles powered by natural gas. The government offers incentives in the form of rebates for the purchase and sale of energy efficient
Andrew Simms, a policy director and head of the Climate Change Program for the New Economics Foundation in England, presents his argument about the impact SUV’s have on our roadways, and the air we breathe. “Would You Buy a Car That Looked like This? “. The title alone gives great insight on what the article is going to be about, (vehicles). “They clog the streets and litter the pages of weekend colour *supplements. Sport utility vehicles or SUV’s have become badges of middle class aspiration” (Simms 542). Simms opening statement not only gives his opinion on how SUV’s are the new trend, but he also paints a picture of what we see every day driving down our roadways. Simms also compares the tobacco industry’s gap between image and reality to that of SUV’s; stating that the cause and consequences of climate change resemble smoking and cancer. Simms comparison between SUV’s and cigarettes shows how dangerous he believes SUV’s are.
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The introduction of more commercially available diesel and fully electric vehicles has started to impact the sales figures of hybrids which is surprising to me because of the natural deficiencies that the hybrid vehicle has to overcome to be more effective both in environmental savings and cost savings to the end user. I believe that some combustion automobiles offer equal if not greater environmental and cost savings over hybrid vehicles. I believe this because the manufacturing and disposal process for batteries is very damaging to the earth, and the longevity of the parts is less than that of a normal vehicle. Also, if measuring environmental impact by comparing fuel consumption, many diesel cars are able to achieve greater miles per gallon than similar hybrid vehicles.
The drastically increasing prices of fossil fuels and gasoline were making it harder for a middle income people to afford conventional vehicles in the near future. The gasoline is a natural resource which is reducing the supply of our reserves every second. In order to keep the fuel prices in control...
“Best Selling Car in America”: this is the claim Toyota has made regarding its popular model, the Camry. Indeed, “The Toyota Camry remains the top-selling passenger car in America” (Stern et al., par. 2). This has remained true during the last 4 years and throughout the last 8 of 9 years. It has sold 340,905 units during the initial 9 months. Of the above images, the car on the left would be the Camry. We see it resting on pavement while vegetation grows in the background. Overall, it comes in at no. 3 on the top ten list. The image on the right is the Toyota Corolla. The automobile sits on an elevated, mountainous region. “The Corolla is Toyota’s compact sedan that has been sold in the U.S. since 1969 and is consistently one of the best-selling cars in the world” (Stern et al., par. 1). The Corolla ranks in at no. 8 with 216,934 units sold.
Since the release of this first mass-produced of the hybrid vehicles the government has been doing a lot of things possible to be involved and also to regulate the purchasing’s of HEVs and PHEVs. Today, the President Obama has created a New Energy For America to plan for changes to its way the United States uses energy. The plan does include a section on the hybrid vehicles and plug-in hybrids. Soon the tax credits will be ended for its regular hybrid electrics vehicles. Now it is known, due to the rapid rate of the HEV sales the government has also withdrawn its tax rebates on HEV models, by giving exclusive tax cuts on EV and PHEV models, which based on its total electric charge that the battery pack can hold. Since then, HEV cars were popular among environmentally conscious drivers.
The substantial increase in the demand for EV’s came just in time as we are slowly but surely running out of oil. Some estimate that by the year 2040, 35 percent of all vehicles will be electric (Sullins, 2017). An article from the U.S. Department of Energy stated that “Electric vehicles hold a lot of potential for helping the U.S. create a more sustainable future. If the U.S. transitioned all the light-duty vehicles to hybrids or plug-in electric vehicles, we could reduce our dependence on foreign oil by 30-60 percent, while lowering the carbon pollution from the transportation sector by as much as 20 percent (energy.gov, 2014). It’s obvious that gas-powered vehicles have harmed our planet with their emissions. Although EV’s cannot reverse that damage that has been done, they can eliminate, or at least slow down, the inevitable demise that our planet is headed towards. Along with the beneficial environmental factors that correspond with electric cars, there are also beneficial financial factors. The average American spends about $2,000 on gas annually. In the future, charging stations will charge roughly $12.00 for a full charge, which is about 300 miles. This means that the average American will save about $1,400 per year on these specific car
The price of cars will caused movements along the demand curve. In addition, shifts of the demand curve for cars will be caused by the price of complement goods, the appearance of substitute products, citizens’ income and the government policies.