Car Market Flashcards
When does the govt plan to impose a ban on internal combustion trucks and cars and why
Trucks 2040
Cars 2035
The reason these vehicles will be banned is partly because of the contribution they make to carbon emissions
When did glasgows lez come into place and what does that mean
1st June 2023
All vehicles entering the city centre zone area will need to meet the less polluting emission standards or face a penalty charge
How many Penalty Charge Noticies (PCN) can you get
A max of one in any one day, the initial charge for all non-compliant vehicles entering the LEZ in Scotland will be £60
What is the PCN capped at
£480 for cars and light good vehicles
£960 for buses and HGVs
Analyse why the use of petrol and diesel cars may be a source of market failure
Market failure occurs when the allocation of our scare resources is inefficient from society’s point of view.
Externalities are the third party spill over effects from production and consumption for which no appropriate compensation is paid to those affected.
People using petrol and diesel vehicles are a cause of negative externalities from consumption.
External costs from consumption causes marginal social cost to diverge away from marginal private cost. The price paid by the driver is lower than the social cost of consumption.
An example is the risk of those with chronic health problems such as asthma which affects thousands of people including children living close to busy roads. This imposes extra long term financial costs on the NHS. Economic agents are assumed not to take account of the cost of their decisions imposing on others. Thus, the market fails to price negative externalities properly leading to over consumption from a social perspective.
*add negative externalities consumption graph
