Air pollution is one critical issue that the United States economy has been struggling to deal...

Air pollution is one critical issue that the United States economy has been struggling to deal with. A vehicle creates a lot of pollution that has negative externality effects in our economy. The Corporate Average Fuel Economy (CAFÉ) was designed to reduce American dependence on foreign oil by producing more fuel-efficient vehicles to help curb emissions. Should the government force car manufacturers to increase fuel efficiency standards, or should the government increase fuel taxes? When evaluating this question, discuss the different costs and benefits that are associated with the options listed and which one you think would be the most efficient way to reduce emissions.

Expert Solution

Answer- Now a days air pollution is one of the critical issue not only United States but also world economy, many industries and vehicle creates a lot off pollution problems and its negative impact on our economy. Government should force to all manufacturing company to increase fuel efficiency standards hence reduce oil consumption and air pollution.

To providing context for potential impact of the many possible trajectories for the CAFE standards, we should decide of the expert opinions on the implications for future vehicle, production of greenhouse gases and international competitor. Government should not increase taxes on consumption of oil fuel in the vehicle, because it will be negative impact on the societies reason behind this is, those who is well economic stable they can pay fuel taxes and use maximum oil fuel in their vehicle and increase more air pollution compare to those whose is economic week and this differences create more problems in the societies, so car manufacture company should increase efficient standards in vehicle.

Rahul Sunny answered 1 year ago

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