AUTO REGULATION

The U.S. auto industry is subject to a set of unique and complex regulations which sometimes have conflicting purposes and effects. Federal fuel economy standards increase prices and reduce safety by encouraging increased marketing of smaller cars. Federal emissions standards increase prices and reduce fuel economy. Federal safety and damageability standards increase prices and increase vehicle weight, thus reducing fuel economy. State insurance regulations may reduce safety by providing lower rates for high-risk drivers. State franchise regulations increase prices. Federal antitrust investigations increase costs and cause planning uncertainty. Federal trigger prices on steel and tariffs on other materials and components increase costs. Federal energy price controls reduce fuel economy, while Federal price guidelines attempt to limit price increases. Many of the current problems of the auto industry are attributable to the doubling of real gasoline prices since 1973, a condition that neither the industry nor the government anticipated. It is concluded that a continuation of recent trends of increasing regulation may convert the auto industry into wards of the State. It is recommended that the Reagan administration move rapidly toward a system of more balanced regulation which would serve the public interest.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/01470590
• Corporate Authors:

  American Enterprise Institute for Public Policy Research

  1150 17th Street, NW
  Washington, DC  United States  20036
• Authors:
  • Niskanen, W A
• Publication Date: 1980-11

Media Info

• Pagination: p. 24-27
• Serial:
  • Regulation
  • Publisher: American Enterprise Institute for Public Policy Research
  • ISSN: 0147-0590

Subject/Index Terms

• TRT Terms: Automobile industry; Recommendations; Regulations; Trend (Statistics)
• Subject Areas: Law; Research; Safety and Human Factors; Vehicles and Equipment;

Filing Info

• Accession Number: 00369207
• Record Type: Publication
• Source Agency: National Highway Traffic Safety Administration
• Report/Paper Numbers: HS-031 042
• Files: HSL, USDOT
• Created Date: Dec 30 1982 12:00AM