Dividends and EPA is expected to roll back auto gas-mileage standards

According to an article by tom Krisher of the Associated Press President Trump who loves to cut regulations for businesses wishes to change the EPA auto gas-mileage standards. The Trump administration believes anything the former Obama administration did was bad, is going to allow car companies not to meet the standard of 36 miles a gallon by 2025. The reality is automobliles contribute to pollution because of many people need to drive a vehicle everyday. The options for transit, bikes and walking are poor so people drive. One of the best methods to cut back on pollution is raise gas mileage standards. While industry may not love it, as a consumer you do not need to fill up the gas tank as much which saves you money.

In the world of gas regulation, California is the biggest state for auto sales and people driving. Another aspect because of the mountains on the coast, the wind does not move the air as much as it does it other states. California over the years has set its own rules and due to its size of market the automobile companies have complied with their number. The EPA or Washington tends to agree with the California number. If the President changes the EPA number, auto companies will have two numbers which makes their lives more difficult. Unlike writing, a change to plants takes years to make one way or the other – it is harder to change the production plant than a piece of paper.

Linking to dividend paying stocks, in general business likes less regulations, but they want enough to keep out some competition. There is always, it depends sometimes business likes regulations, sometimes business would prefer less. However in terms of collection of data, business always likes more.

There are more questions than answers, till the next time – to raising questions.

 

Leave a comment