Increased Consumer Costs in US Automotive Industry

John Graham, the co-author of the Indiana University study, entitles A Microeconomic Study of Federal and State Automotive Regulations, suggests numerous ways in which… One such example is for legislatures to consider cost-effective methods to phases out older vehicles, which would both increase profits for auto dealers while reducing GHG emissions, and to refine performance standards in order to make the entire industry more cost-effective for production and consumers alike. The study also makes it clear the responsibility for improvement does not rest with one party in particular but rather is something shared by analysts, legislators, and regulators, by giving recommendations for reformation to each of them.

While the study admits that there are some factors not examined in its contents, such as numerous environmental restrictions as well as an overall societal benefit, the study is clear that there needs to be an examination and a reformation in the auto industry which may seem detrimental in the short-term but will have numerous long-term benefits.

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