LyrArc Article Gist
Climate policy changes lead to $1.3 trillion savings according to analysis from DJT administration and EPA's Zeldin, with $1.1 trillion in savings from lower vehicle prices which addresses unaffordability of cars. Using the average price of a new basic Toyota Corolla the price in 2020 was $19,000 which has gone up to $23,000 a price increase of 21% by 2025 over a 5 year period. The cost in 2026 of operating a Gas powered vehicle is on average about $2500, for EV car about $1000 with $1500 in savings per year for EV's that need to be figured into the equation at gas prices that prevailed in 2024 of $4-$5 per gallon . At prices of $3 per gallon the gas costs come down to $1200 when driven 12,000 miles at 30 mpg for 400 gallons of gasoline consumed. This makes the difference between gas and EV yearly savings on gasoline costs down to about $200 from $1500. This makes gasoline powered cars attractive as car companies can reduce EV investments and pass on some of these savings in lower car prices in 2027 in exchange for favorable rules on emissions and EV transition dates. Are there losses through the emissions and climate change? The DJT/Zeldin EPA analysis points to global climate emissions from China and India (the coal powered plants) continuing at a pace that would determine the overall change in climate for 2026-2027. In this kind of approach the goal is to make cars affordable over a 2-3 year period for US and European carmakers who would be expected to cut prices. It is about flexibility in fighting the Cost of Cars a big component in the Cost of living with housing as the next large component. It is not a long term strategy, simply one that offers a flexible approach. Will the US, Europe and Japan fall behind in EV's technology? Hybrids a focus of Japanese cars will continue to advance that technology which is becoming a preference where it is affordable for customers. Toyota for instance will have a wide lead in hybrids technology by 2030. Much of the Chinese market will have EV's and the EV's technology will advance in China in 2026-2027, and tariffs will be needed to protect European and American carmakers for 2026-2028. It is a strategy tradeoff to deal with the cost of living crisis in US, Europe and Japan answering call for a flexible approach that was also heeded by the Biden administration in relaxing carbon emissions rule changes. It will require automakers to step up and cut prices for gasoline models for buyers at the entry and lower range for affordability by 2026-2027. What about climate action? The strategy is based on the idea that climate action requires India and China (coal powered plants) on board to make a real difference so that over 2-3 years to 2027 the US, Europe and Japan need to address affordability for the lower end entry cars. There is an element of denial of climate change in parts of the DJT administration in the US but not in Europe and Japan. It is also true that leading DJT administration officials Secretary Bessent see the problem of climate as real and one that needs to be addressed yet leaving room for flexibility to tackle affordability crisis for ordinary workers with low incomes struggling to make a living. Bessent and others in the DJT administration are calling for using all of the resources to address needs of people struggling to make a living, and for a strategy for the US to get back its manufacturing capacity from China and for rebuilding the US economy after deindustrialization (caused by Clinton's huge US economy shattering failure to provide safeguards for abuse of the trading system by China in signing a poorly drafted agreement for China's entry into WTO at the end of his term in 1999-2000 just when he had fought impeachment.
...
