EPA rules focused on emissions reduction could make vehicles more expensiveJune 11, 2014
New EPA rules could have implications regarding the cost of vehicles
The U.S. Environmental Protection Agency has been proposing changes to its regulations regarding the emissions produced by various industries within the United States. The federal agency recently instituted regulations that aim to cut down on the emissions produced by the country’s power plants and is now turning its focus on to the transportation sector. The agency aims to introduce new rules to the transportation sector concerning the way vehicles are built and placing a limit on the emissions they produce. Some argue that these new rules will significantly increase the cost of vehicles, but this may not be the case.
EPA aims to cut down on the emissions produced by the transportation sector
New rules coming from the EPA means that automakers will have to revise their manufacturing process. This can be an expensive endeavor, which could translate into financial losses if the cost of vehicles is not increased to compensate. How much more expensive vehicles would become is not known for certain, but a new study from the Business Forward Foundation suggests that the new EPA rules will only lead to a modest increase in vehicle prices.
Study shows that EPA rules will only make vehicles $7 more expensive
The study suggests that the EPA rules would make the manufacturing of new vehicles cost only $7 more per vehicle produced. By comparison, automakers could face losses from $1.25 million or more per hour if an assembly factory is shut down due to severe weather or other unpredictable disasters. The new EPA rules are meant to help automakers become more resilient to such disasters, but also focus on encouraging automakers to adopt more energy efficient practices.
US government is growing bolder on climate change issues despite controversy
Climate change is still a very controversial issue in the U.S., but the government is beginning to take action on the matter. The federal government has been supporting renewable energy more aggressively and has been introducing new energy efficiency standards in recent years. Federal agencies, like the EPA, are also focusing on reducing emissions across several industries that have been responsible for large emission production in the past.