Question

Should gas prices be higher in order to encourage the purchase of energy efficient cars?

Answer 1

Gas prices & Energy efficient cars
Gas prices have an impact on the purchase and demand for fuel efficient cars especially electric cars but the level should be analyzed carefully. Interest of people about the kind of cars they would use and the utility of fuel efficient cars has impact on their level of purchase along with the prices of gas. A survey in US showed that around 57% people do not wish to buy electric cars whatever the price of gas. A less percentage of people may be worried about the prices of gas and may shifts to electric cars. The price of electric cars being high than the normal cars, people may think about the large loss in the purchase itself than the price of the fuel.
Middle income people would not be ready to spend higher price to purchase electric cars. High income people will always be ready to pay the gas price even how high it is. Along with the rise in the gas price, manufacturers could consider less expensive or relatively equal price for electric and normal cars. This can influence the purchase of electric cars over normal. Efficient long lasting batteries that could attain trust are an important factor to increase the purchase of energy efficient cars. The disability in every emergency situation, that the time taken to charge are negative factor that affects the purchase. Convenience in charging the batteries and the durability of the motors are all factors affecting the decision of consumers whether to purchase energy efficient cars. High gas price alone may not increase the purchase of electric cars since these all factors constitute to the decision of consumers to do the same.