Introduction
The increase in fuel prices contributes to high costs of living globally. The shortage of petroleum products increases their prices because the supply curve shifts to the left, thus changing the equilibrium point. The transportation industry is often the most affected by a rise in fuel prices. However, the production of electric cars has improved the situation due to reduced demand for fuel. Many people are purchasing electric vehicles, thus lessening the reliance on petroleum products in the automotive industry. Essentially, the increased adoption of electric cars globally leads to both short and long-term economic benefits, including saving fueling costs, energy security, and emissions reduction.
Discussion
The most apparent benefit of using electric cars is enhancing energy security and fuel economy. In the recent past, I have witnessed several occasions of unprecedented fluctuations in fuel prices in the United Arab Emirates (UAE) and other countries worldwide. However, stakeholders in the automotive industry often pass the burden of escalating fuel prices to consumers by increasing transportation costs. Electric cars have helped reverse this trend by lessening overdependence on petroleum products. With an electric automobile, I can save several dollars while charging my car rather than fueling it. Indeed, several car-manufacturing companies, such as Chevrolet, Tesla, Hyundai, BMW, and Ford, have introduced electric cars in UAE, thus shifting the demand from petroleum products to electricity, which is more readily available than the former.
Significantly, electric vehicles increase efficiency in the use of petroleum products. Over-reliance on fuel creates market inefficiencies due to oil cartels that control the fuel industry. In return, market failures exist due to self-centered business activities such as hoarding that create artificial shortages and increase prices. This market imperfection often thrives because fuel is a relatively inelastic product. The change in fuel prices has little effect on its demand because people cannot survive without the transport industry. Electric cars will dramatically reduce fuel costs due to the high efficiency of the electric-drive features. Although the prices of electric vehicles are considerably higher than that of conventional vehicles, they will continue to drop in the long term.
Electric cars have also lessened emissions released into the atmosphere. Every person globally has experienced this problem, mainly through global warming and rainfall decline. Although governments across the world collected substantial amounts of taxes through the sale of fuel, they were also required to use the same money to mitigate the effects of climate change. In essence, the gains from the trade were lesser than perceived. Therefore, I am happy that my car does not require the government to set aside money meant for addressing adverse climatic conditions because I do not pollute the atmosphere.
Conclusion
The adoption of electric cars has significant economic benefits across the globe. The shift to electricity helps lessen overdependence on petroleum products, which often leads to unprecedented fluctuations in market prices. Electric vehicles strengthen efficiency due to their electric-drive components. Significantly, they eliminate poisonous emissions to the atmosphere, thus saving billions of dollars used globally to counteract the adverse effects of climate change. Although the purchasing costs of electric cars are high, they will decline in the long term with increased manufacturing. Therefore, global economies need to embrace electric vehicles to stabilize fuel prices, reduce emissions, and maximize the economic gains from the automotive industry.