Automotive Study About Regulatory Standards

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Here is a brief excerpt summary of some of the findings associated with the University of Indiana’s Macroeconomic Study of Federal & State Auto Regulations: “Causal Pathways for Economic Impacts:  We consider three options for how the regulations and such standards can impact the U.S. economy:

• How the cost of manufacturing cars rises and effects the prices paid by purchasers
• By stimulating the vehicle supply chains with innovation, hiring, and new advancements in electric vehicles, vehicle weight reduction and new styles of engines etc.
• How reduced gas usage allows for other spending among households and the way it impacts the fuel market

The basic findings of the model are with increased with the following:

Increased regulations: As standards become more rigid there are drop in related employment, as well as reduced disposable income available to spend elsewhere.

Innovation: Along the supply chain, the innovations necessary to gain compliance serve to off-set the problems with employment and income.

Savings of gas: That when consumers spend less on gas they transition those funds back into the economy that actually has a better overall effect on the economy, despite the way it hurts the U.S fuel business segment.” The complete story is available here.

The Old Car Scrap Process

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