Introduction
Microeconomics characterizes the long run as the strategic period where production lacks fixed factors. Changes in the capital stock or the entrance or the equivalent exit of industry do not affect the output. The economy hardly recognizes varying factors as having any effects on the general production. Taxation is considered to have a crucial impact on the growth of an economy. However, it has been found to have a negative impact on the very economy in the long run. This paper analyses the situations in which subsidizing industrial production at such a time becomes beneficial to the nation.
The changes in the economy have equally born changes in technological evolution. This was characterized among others, the development of electric cars. Sconce bore cars that use renewable energy and are electrically powered. The latter has proven to be more efficient and responsive to nature and the users. They have incredibly significant impacts in the economic world as well. This paper also seeks to analyze the various details of the importance and the benefits that the final consumer acquires. From the usage of an electric car, more so one that uses renewable energy, what interests do they learn more than those who use the alternative? Most of the energy used has also been designed to be solar power and wind power.
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Tax, Industrial Production and the Nation
Both increasing and decreasing taxation have effects on the economy. Increasing taxes can be a disincentive to invest. When the taxes are high, the taxpayer will find it hard to save, invest. It would also affect how economic resources get allocated. At the same time, lowering the very taxes is bound to lag behind economic growth especially in the long-run. This mainly occurs due to the increase in deficits. In the long run, the primary determinant of the economic potential is supplied ( Carroll & Prante, 2012).
Industrial production, in the long run, is not majorly affected by the changes in factors of production. The taxpayers’ dollars can be used to finance the industrial section. There has been found to be a high effect in the increase of the high-income earners' taxation rate. A little increase in the amount of tax they pay has been found to increase the general governmental tax base. Such funds are then used to fund the industrial section. This ensures proper utilization of resources with appropriate funding giving an equivalent increase in the total output.
Optimal production balances the supply curve and matches it with the economic demand. Supply being the base of economic growth in the long-run, its balance reduces deficits in the economy. This helps the nation by accelerating the economic growth and hence fighting the eminent inflation or recession. Hence the use of the taxpayer’s dollars to boost the industrial production uplifts the general economy of the subject nation (Palić, Žmuk & Grofelnik, 2017).
What are the benefits to consumers who purchase electric cars?
Electric Cars and Renewable Energy
Economic growth, industrialization and the rise of technology have brought the use of electric cars to replace gasoline and diesel. The primary importance of such cars is pollution free and environmentally friendly. They are encouraged in to be significantly assembled and availed in the economy. To the buyer and the optimal consumer, using cars with renewable energy have been found to be beneficial. The primary sources of renewable power that have better effects used in the cars are wind energy and solar power.
Most of the consumers who opt for electric cars that use renewable energy have calculated the effective cost cuts. The purchase is quite expensive due to the methods, recourses, and cost of making. The scarcity also makes them valuable. Once home, the owners forget about fuel costs. Fluctuations in the prices of fuels no longer scare people with electric cars. Recharging using renewable energy such as solar power and wind power becomes cheaper. Inbuilt combustion engines wear out faster and hence requiring more frequent service. This makes their maintenance costly ( Zivin, J. S. G., Kotchen, M. J., & Mansur, E. T., 2014).
They also do not need to buy or replace car batteries as they do not use the same. The maintenance of electric cars is relatively cheaper compared to the former. This promises the consumers great prominent cost cuts. Fueling is also made simple; they plug in the machines like they do with a Smartphone. Equally, most of the spare parts needed for the maintenance of non-electric cars are not required for the electric ones. Such include the likes of oxygen sensors and fuel cap replacements.
For the speed enthusiasts, electric cars are what they need. Electric current has a reputation for its speed. With the same emulated in the making of electric cars, they have recorded unspeakable high speeds. A significant purpose of the latter is the absence of combustion; the latter have ready energy that speeds up the engines with quick auto accelerations. The electric motors quickly react and hence very responsive.
The mileage they cover is also different. They do not readily heat giving them a chance to travel longer distances compared to those with internal combustion. The pollution reduction is equally not only beneficial to the environment. They have eco-friendly emissions that pose little harm to the user. Cars that use gasoline and diesel produce too much of carbon due to incomplete combustion. This is not the case with electric cars ( Sovacool, B. K., & Hirsh, R. F., 2009).
References
Carroll, R., & Prante, G. (2012). Long-run macroeconomic impact of increasing tax rates on high-income taxpayers in 2013. EY_Study , 1-24.
Palić, I., Žmuk, B., & Grofelnik, B. (2017). The long-run impact of personal income taxation on economic development: Evidence from Croatia. Croatian Review Of Economic, Business And Social Statistics (CREBSS) , 3 (1), 35-44.
Sovacool, B. K., & Hirsh, R. F. (2009). Beyond batteries: An examination of the benefits and barriers to plug-in hybrid electric vehicles (PHEVs) and a vehicle-to-grid (V2G) transition. Energy Policy , 37 (3), 1095-1103.
Zivin, J. S. G., Kotchen, M. J., & Mansur, E. T. (2014). Spatial and temporal heterogeneity of marginal emissions: Implications for electric cars and other electricity-shifting policies. Journal of Economic Behavior & Organization , 107 , 248-268.
