Policies And Automotive Industry In The U.S.A.: Environmental Perspective

This paper analyses the US government Policies on Automotive industry withrespect to its impact on the environment. The study will be conducted based on theimpact the policies have on three major corporations, GM, Ford, and Chrysler. Theautomotive industry in the US plays a big role in shaping the legislature and policiesworldwide. In the US the most effective way to control the pollution/emission due tothe vehicles is through the Corporate Average Fuel Economy (CAFE) standards andrenewable fuel standards. Studying and analyzing the data based on the CAFEstandards and renewable fuel standards for the conventional engine light-duty vehicles,it can be seen that from the year1993through2013, there has been a positive change.The global warming emissions on average has gone down simultaneously with theincreasing fuel economy per distance travelled. Other ways to mitigate the effect due tothe emissions are the implementation of alternate fuel vehicles. The stimulus packageand tax incentives provided by the US government has been of an immense aid tofurther popularize and innovate such technologies. Knowing what variable to controland how plays a vital role in not only shaping the success of the policies enacted butit’s beneficial for the companies as well, since the policy plays an important role inshaping consumer mentality.