The term Chelsea tractor refers to the large 4x4s used in cities and towns; these vehicles are now more popular than ever. As stated by the BBC "Last year around 187,000 were sold - compared to 80,000 a decade earlier - equal to almost 8%, or one in fifteen, of all cars sold." This shows a growing trend in the popularity of these types of vehicles, many people use them for school runs due to the safety aspect of the cars, many simply like to show off their wealth and have the "big car". The problem occurs when many people drive these vehicles in cities and urban centers, as they cause congestion and produce more carbon dioxide than other cars. Many people believe that under these circumstances the "Chelsea tractor" should be taxed more than other vehicles due to their size and emissions factor. Many people agree, but some do not see why they should pay more, the minority of so-called "Chelsea tractors" are used in the country by people who use them for the purpose of their design and these people believe they would be penalized for doing so to own them. a working vehicle. Many environmentalists believe that taxing these "Chelsea tractors" more will stop people from buying them, but the question is where to tax these vehicles more, the suppliers or the consumers. If suppliers were taxed, this would increase the price of cars while driving away some consumers, conversely replacement “smaller cars” would become more desirable. As Fig. 1 shows, if a higher tax were applied directly on the production of 4x4s, the cost of production would increase, so the supply line would shift to the right, resulting in a shift in the market equilibrium from what it was previously. The problem is that if automakers are taxed higher, the consumer may simply spend more since once purchased there are no other costs associated with the larger vehicle. Obviously the additional cost will put a minority of consumers away from the prospect of purchasing the 4x4 even if it were to be used for its intended purpose. If taxes on consumers of these large 4x4s were increased (through road tax), consumers could be discouraged due to more money coming out every 6 months or year. Fig. 2 shows how demand would be affected by higher taxes introduced, demand would decrease, demand for smaller replacement cars would increase due to opportunity cost, 4x4 would be sacrificed to allow the consumer to save money.