Officially in 2035, there will be a significant shift in our automobile industry. Two states in the U.S., Washington following the lead of California, have declared a ban on the sale of gas vehicles. This ban will impact the economy via the production, sale, and automobile mechanic industries. Although California is the forerunner of this policy, other states show similar interest to follow suite changing a local impact to a national effect. The implications of this bill coming into effect in 2035 in certain states will greatly shift the automobile industry and its consumers. The pressure to phase out gas vehicles will gently steer the public into purchasing non-emission vehicles; however, budget constraints, availability, safety (electric vehicles malfunction and catch fire in dry environments) and functionality (increase in electric charging changes in the public) will need to be addressed. Furthermore, the feasibility and convenience of operating these vehicles across the country will have to also be managed as the resources for charging stations versus gas stations is not currently available. Economically, there is also concern if zero-emission vehicles will be affordable for those in need as well as if the supply can meet the demand. The overall intention of this order is good; however, much still needs to change to avoid an economic crisis.
References
Governor Newsom Announces California Will Phase Out Gasoline-Powered Cars & Drastically Reduce Demand for Fossil Fuel in California’s Fight Against Climate Change. (2021, April 26). Office of Governor Gavin Newsom. Retrieved September 2, 2022, from https://www.gov.ca.gov/2020/09/23/governor-newsom-announces-california-will-phase-out-gasoline-powered-cars-drastically-reduce-demand-for-fossil-fuel-in-californias-fight-against-climate-change/
Exec. Order N-79-20, (2020), Retrieved 2 September 2022, from https://www.gov.ca.gov/wp-content/uploads/2020/09/9.23.20-EO-N-79-20-Climate.pdf
Hey Alissa, this was a fantastic post, you did a great job in breaking this subject down from an economics standpoint. I was unaware of this news until I had read your post, if this happens then your prediction will definitely come to pass. A ban on the sale of gas vehicles would heavily impact the automobile industry and the economy as a whole. We have already seen the impact that COVID-19 left on the automobile industry, driving up the prices of used vehicles due to the high demand and low supply from manufacturers. I think you did a great job in mentioning the external factors such as there not being enough charging stations to supply completely electric at this point. Also the fact that many families may not be able to afford these vehicles, and the affect it would have on gas stations are other factors. Once again, I heavily enjoyed reading your post, it was very educating.