Economy Wide Solutions

An economy-wide problem requires an economy-wide solution. Until now, greenhouse emission regulations have focused heavily on the automobile, ignoring many other sources of emissions. Controlling greenhouse gas emissions means involving automakers, energy companies, utilities, business of all sizes and consumers. No one sector should exclusively bear this regulatory burden.

Automakers must continue to integrate emission reducing technology while expanding fuel sources beyond petroleum. This includes further electrification of the vehicle through hybrid systems, the use of biofuels and the eventual adoption of emission-free hydrogen as the motor fuel of choice.

Currently energy and oil companies are regulated through automobile emissions standards, leaving automakers and consumers to bear the impact of this regulation in the form of higher vehicle and fuel costs.

Consumers also have a role to play in the reduction of greenhouse gases and should be made aware that the transition to a greener economy will not be painless. Congress prefers passing legislation focused solely on industry because consumers - who are voters – don’t feel the direct impact. However, as industries pass the cost of compliance on to consumers through higher prices these regulations act as a hidden tax on American consumers.

Helping consumers understand that reducing carbon emissions will be costly is only the beginning. Consumers need to make smart choices, understand how their lifestyle impacts the emission of carbon dioxide and learn ways to reduce their carbon footprint. Consumers are the real key: their future preferences, not the government, will determine the success of any greenhouse gas reducing policy.

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