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.
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.
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.
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.
The article by Mike Moffatt shows the price elasticity of demand for gasoline. According to Molly Espey the average price elasticity of demand for gasoline in the short- run is-0.26 and -0.58 In the long-run, which is a 10% raise in the price of gasoline lowers quantity demanded by 2.6% in the short- run and 5.8% in the long- run.Also, there are a studies were conducted by Phil Goodwin, Joyce Dargay and Mark Hanly at review of income and price elastics in the demand for road traffic and each of them has different study. Furthermore, the realized elasticities depend on factors such as the timeframe and locations that the study covers. If the gas taxes will rise, will cause consumption to decrease.
To conclude this analysis, it can be noted that any increases in the prices of fuel will increase Australia’s economy as a whole, in other words the higher the costs of logistics will increase the price of products (Australian Competition & Consumer Commission 2014). The consumers will have to handle the burden of having higher costs of products, which would create an inflation. With the increasing price of fuel, consumers might want to alter their lifestyles, such as using public transportation or even carpooling. Vacations and travelling will also have to be cut down. Australia requires further government intervention to control the price of fuel by subsidizing so that inflation may be curbed.
“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.
...ls, power and diesel which have gone up compared with the previous year and the inability of manufacturers to pass on these increases to consumers.
With a gasoline-fueled vehicle, buying gas to operate your car is a never-ending process. With the high price change of gasoline and oil, operating a gasoline-fueled vehicle tends to be very costly. While there are some types of small gasoline vehicles that get much better gas mileage than larger vehicles, even the most powerful gasoline cars will normally desire a contribution every month. According to some experts the only way a mainstream market for green vehicles wills materlize is with a pronounced and prolonged rise in fuel prices. (Buss, 4)
A third cause of the high prices is that the types of cars and trucks we are driving tod...
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
car and at the same time in other countries they are selling their cars for less
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.
Types of goods will help us determine whether demand for cars is elastic or inelastic. If a good is considered to be a luxury rather than a necessity, the greater is the price elasticity of demand (McConnell & Brue, 2004). Cars can be deemed as necessary due to a need for transportation. Other types of cars can be classified as luxury. A person who needs to be able to get from one place to another will have the need for a car. An old vehicle may suffice. In such a scenario, buying a brand new car is more likely to be a luxury rather than a necessity. If car prices go up, people are more inclined to just keep driving their old vehicles. In essence, the cars already on the road would serve as substitutes for new cars. However, over a longer period of time, old cars tend to wear out and the elasticity of demand for vehicles is less.
With convenience comes cost. There are many costs associated with owning a car. Firstly learning to drive can be prohibitive, with lessons often out of a lot of peoples budgets. Once you have passed your test buying a car can also prove expensive. It is often the case we have to buy cheap second hand cars as new cars are very expensive. Sometimes this is fine and you can have a reliable car, but other times you pick one up that’s not been well maintained and can cost you a fortune in repairs and keeping it on the road.
The fast population growth rate of humans means that the necessity for transportation vehicles is also enormously increasing. Studies have shown that in 1999 the worldwide number of vehicles registered was 700 million. From this huge number of vehicles, the US has a large share, which includes 200 million cars and light trucks. The number of cars worldwide also grew three times faster