The role of government in regulating the demand for automobiles involves car appearances, components designs, and safety features. Government regulations thus lead to increased production costs in the automotive industry. Environmental sustainability is another major concern for customers and governments as well. This puts the sector at a pressure to manufacture vehicles that consume less or recycle energy. Overall, this aspect affects production costs and the demand for automobiles. Failure to comply with regulations can lead to additional expenses like penalties and fines. Thus, the industry strives to innovate vehicles and vehicle parts that promote cost-efficiency and compliance with government regulations.
role of government in regulating the demand for automobiles
ROLE OF GOVERNMENT IN ENVIRONMENTAL SUSTAINABILITY
Government regulations affect fuel efficiency requirements and the costs of emissions to promote environmental sustainability. After the Arab oil embargo in the early 1970s, the U.S. government formed the Corporate Average Fuel Economy (CAFE). It is a set of standards for automotive fuel efficiency. Currently, the industry is working on upgrading to increase fuel efficiency to 54.5 miles per gallon by 2025. This is in a bid to increase the demand for automobiles. However, these upgrades will be costly, and innovation is crucial for the industry’s success. Lastly, as the role of government in regulating emissions continues to strengthen, automotive manufacturers keep transferring the costs to consumers.
role of government in environmental sustainability
DEMAND FOR AUTOMOBILES AND ENVIRONMENTAL SUSTAINABILITY
As automotive manufacturers make every effort to increase the demand for automobiles, consumers are showing more concern for the environment. This is in relation to carbon emissions, vehicle safety features, and environmental sustainability. Issues of disposal also affect the environment because cars have many materials like rubber, plastic, glass, paints, and steel. Some people have set up junkyards where they buy old vehicles and parts. However, this is not enough to ensure environmental sustainability. The role of government includes overseeing and reviewing recycling and disposal of car parts and other electronics. This is following the overall effects that car emissions have on the rate of pollution and global warming.
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