A Defense of the Energy Agenda Against the US Auto Dealers Assault

US Automobile Dealers are being 

affected by the 

US Government's Energy Agenda

Photo Credit: William Eccles / library.byways.org

US automobile dealers are taking matters in their own hands in their fight against the government’s agenda favoring reducing greenhouse gas emissions, alternative fuel development and fuel efficient technologies. Their arguments, although valid, may not be entirely concrete. Here are some points:

1. The Energy Agenda will increase vehicle prices.

Almost all businessmen know that increasing the price of products is not always good for the business. However, due to market competition, they cannot just increase their prices unless other businessmen do the same. 

For car manufacturers, it is more likely that they will encourage consumers into buying by providing fuel efficient vehicles at a low cost. Car manufacturers will strive to keep their prices low in order for the consumers to be able to buy their products.

In addition, although it is very possible that carbon emission taxes will be imposed, with current oil prices forecast to double by 2020, the more logical vehicles to buy are either hybrids or electrics. Owning a fossil fueled vehicle 5 – 10 years from now might prove more costly because fuel prices will soar. Hybrids and electric vehicles, on the other hand, are free from carbon emission taxes and will be less impacted by fuel price changes.

2. Safety features may be compromised

Safety rests in strict implementation of regulations and quality control that has to be closely monitored by the government and car manufacturers. In this aspect, again, market competition may play a major role.

Consumers, especially US car buyers, never patronized cars that regularly break down or are always involved in an accident. That is why major car manufacturers have recalled entire models of cars that have been sold which have parts found to be defective. They are less likely to sell cars that they will recall on a later date. In addition, car manufacturers put their cars through rigorous tests because they always want to satisfy their customers.

Another good thing about today is that technology is becoming cheaper and it enables car manufacturers to fit their cars with more safety features.

3. The agenda will limit choices

This is not true. Automakers can still produce and sell a wide variety of vehicles including fossil fueled ones. Consumers can still buy them. The only thing here is that when somebody buys or sells vehicles that produce relatively high carbon emissions, they have to pay for the damage it will cause to the environment. The government is saying that carmakers and consumers also have to be responsible for the greenhouse gases that the cars will emit. Environmental protection has to be everybody’s concern.

The government’s duty is to provide direction. Because of impending problems regarding climate change and increasing prices of non-renewable resources, the government has to take aggressive actions. We need someone, in this case the government, to pave the way for more lasting solutions.