A Study of the Automotive Plastics Industry
Ebell, Monique C.
MetadataShow full item record
This paper is concerned with analyzing the various factors influencing demand and supply, as well as the externalities, in the automotive plastics industry. Demand for automobiles plastics IS derived from the demand for automobiles in general, and from the demand for fuel efficient automobiles in particular. Demand is related directly to the costs of substitutable materials, and also to the value placed upon plastic's advantage over substitutable materials. Supply of automotive plastics is related inversely to labor and raw materials costs, and is positively affected by the removal of tariff barriers. Both positive and negative externalities are associated with automotive plastics. The positive externality arises from the role of plastics in improving automotive fuel efficiency, thus helping to reduce air pollution, while the negative externality arises from the difficulties in disposing of or recycling plastics