Why the Government Should Subsidize Hybrid Cars

In: Business and Management

Submitted By emobes22
Words 690
Pages 3
Why the Government Should Subsidize Hybrid Cars

In the midst of an economic recovery and an energy crisis, the United States of America is at the brink of much political debate. One major political dispute arises as to whether or not hybrid cars should be subsidized. According to our research, the economy would be more sustainable and prosperous if the government subsidized the purchase of and research and development of hybrid vehicles. The sales of hybrid cars have steadily declined by 53% within the past year, which is rather detrimental to society. Incentives to buy hybrid cars are too insignificant because technology has not yet been able to produce them at affordable prices. Subsidies should be provided because positive externalities are not accurately reflected in the cost. America desperately needs to create solid energy policies in order to thrive domestically and internationally. With an inadequate amount of attention directed towards environmental and energy issues, America should embrace hybrid vehicles in order to reduce our consumption of foreign oil, thwart the threat of global warming, and implement innovative techniques to use energy more efficiently. To support our findings, we will explore the negative externalities associated with a petroleum-based economy and emphasize the magnitude of environmental benefits that could be reached with more hybrid vehicles. Further we will use economic analysis to justify that the implementation of these subsidies will benefit society as a whole.
The United States began subsidizing hybrid vehicles in 2005, but these tax credits no longer exist. There has been a shift from subsidizing hybrid vehicles to plug-in electric vehicles. While these subsidies are generous and help reduce greenhouse gas emissions, the subsidization of hybrid vehicles should not be discontinued. Electric vehicles are…...

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