By Sydney Bell
On August 25, 2022 California passed a law stating that there will be a ban on the sale of non-renewable energy cars by the year 2035. You might ask what non-renewable energy cars are? Well, they are the main source of transportation in America, which includes all gasoline powered vehicles. California’s government would like to completely transition to renewable energy cars — ultimately, electric cars — to stop the toxic pollution and emissions that gasoline (CO2) releases into the atmosphere, which then causes the depreciation of the ozone layer and heating of the global atmosphere.
What does this law have to do with the economy? In retrospect, electric cars are much more expensive than gasoline powered cars; therefore, this law will damage the financial resources of low to middle income households. Additionally, inflation plays another costly role, and as it hit record high since the 1980s in 2021, these lower income families will struggle economically when living in California.
In California, there are countless dealerships that do not have an all around electric powered car to sell, so by the time 2035 hits, these dealerships would have either advanced their technology to a renewable energy, which still causes the product to be expensive and less available to lower income people, or simply close. Various jobs will be diminished and unemployment in the gas-powered vehicle market would increase in the state of California due to the closing of these dealerships. Therefore, in order for gas stations and or gas-powered car dealerships to follow the law there would be a need for new infrastructure. And building this modern infrastructure may pose funding and logistical challenges. Traditional automakers in the gasoline industry will also now have to face new economic challenges when the market shifts from a heavy gas-powered car to an electric car.
However, the economy may enjoy some benefits. For example, although many jobs will be lost in the gas-powered vehicle market, new jobs that have to do with green energy will arise. These new jobs may include: manufacturing, research and development, and maintenance of the new technology that comes with renewable energy.
Additionally, the new Green technology Sector will grow as a market in modern society.
This then will create a whole new economic market of itself, which explores new opportunities, jobs, creation, and innovation.