CNN -- It's all well and good governments and the public demanding cleaner air, but how are those charged with effecting reductions of pollutants -- the automobile and truck manufacturers -- going to tackle a problem that can't simply be fixed overnight?
The idea that manufacturers should lead the way on reducing emissions is far from new, although, fairly, they argue that any legislative framework to limit carbon dioxide (CO2) from cars should be cost-effective and that they should be allowed sufficient time to prepare to meet new standards.
Such is the feeling of the ACEA organization, which represents the 13 major European car, truck and bus manufacturers.
It argues that, in addition to the above, European automotive industry deserves better recognition for its environmental track record and rapid reaction to ever stricter legislation.
These feelings formed the basis of a keynote speech by Sergio Marchionne, president of the European Automobile Manufacturers Association and CEO of Fiat, at the ACEA's annual gathering in Brussels recently.
In it he outlined what the vehicle industry can realistically contribute to reduce further carbon emissions from cars.
"The car industry demands a cost-effective policy to reduce further CO2 emissions from cars. A combination of traffic management, the use of biofuels, a more economic driving style, CO2-related taxation and improvements in vehicle technology will lead to better results for the environment, without endangering jobs in the EU," said Marchionne.
"There can be no doubt that the industry does its share. We are not walking away from our responsibility."
But, warned Marchionne, the recent proposal from the European Commission, which demands a mandatory target for new cars of 130 grams of CO2 emissions per kilometer (130g/km) by 2012, is too costly and will force the industry out of Europe.
"The current proposal is unbalanced, inadequate and economically inefficient. That is our main objection," said Marchionne.
ACEA feels that the proposal focuses excessively on vehicle technology.
This is against the recommendations from the influential CARS 21 group, comprising EU commissioners, representatives from the car industry, the European Parliament, national governments and other stakeholders.
It declared that only the combined efforts from all involved would improve both the environmental performance of cars and the competitive strength of the industry.
Furthermore, the announced legislative framework is unlikely to be ready before 2009 -- by which time the new models of 2012 will have been designed long since.
"The industry must be given lead-time to meeting any new requirements until 2015 at the earliest," argued Marchionne.
As an example, last year the Japanese government set new CO2 emission targets of 138g/km by 2015.
"Reducing CO2 emissions is a complex challenge," said Marchionne, adding that the industry has an unwavering commitment to reducing CO2 emissions and will continue making efforts.
"There is no "one solution" to cut carbon emissions from cars. In the short term, progress will be the cumulative result of incremental steps in engine technology, improved aerodynamics and reduced vehicle weight."
Even in the UK, renowned for its reticence in embracing greener technologies, the acceptance of the role biofuels can play is demonstrated by the construction of a new, £250 million bioethanol production plant.
The Secretary of State for the Environment, David Miliband, paid a visit to Teesside in the north-east of England recently to what will be the UK's largest bioethanol factory, producing 400 million liters of bioethanol a year from home-grown wheat.
In a recent ministerial speech, Mr Miliband said that the UK must consider the move to a post-oil economy and added that transport would be the biggest challenge.
But he pointed to Brazil, where three-quarters of cars run on ethanol, as proof that it would not be insurmountable.
General Motors, in particular Saab, is rolling out increasing numbers of biofuel-powered cars. French giant Renault also considers biofuels as one of the most effective ways of controlling CO2 emissions in the medium term.
Biofuels are ecologically efficient because they are derived from vegetable matter -- a renewable, diversified energy source -- and also economically efficient because they require limited development costs and vehicles are affordable for most customers.
Furthermore they reduce energy dependency on fossil fuels.
For existing engines to run on both conventional fuels and biofuels, they have to be modified to enable them to adapt automatically to different fuel types. These changes principally concern the fuel tank, the injection system and the combustion chambers.
To develop its ethanol-compatible Mégane, which goes on sale in the UK in June, Renault drew on expertise acquired in Brazil where it has been developing flex-fuel cars since 2004.
At the end of 2006 Renault introduced a number of light vans which run on B30 biodiesel -- these function with equal ease on conventional diesel or on blends of diesel with 30 per cent biodiesel (B30). The first passenger cars to use biodiesel will appear in 2008.
In the longer term, a selection of alternative technologies -- including electric vehicles, hybrids and fuel cells -- will come on stream.
Supporting Marchionne's view on the industry's efforts to clean up its act, massive investment in research and development throughout Europe has driven technological change for the better.
For example, new diesel cars emit 95 per cent less soot from the tailpipe than those made 15 years ago, while the average CO2 emissions of new cars has been cut by 12 per cent since 1997.
It's not just emissions, either.
Each vehicle made in Britain requires half the energy to produce than it did just five years ago, saving an estimated 700,000 tonnes of CO2 a year. Waste to landfill per vehicle produced has also been cut by a factor of four, from 66.4kg in 2001 to 14.5kg in 2005.
This article shows how people are trying to eliminate the externalities from cars emissions buy using a more environmentally friendly substance. They could charge a tax on CO2 emmission which would bring the social cost back down to the actual cost. By gradually when all the cars have turned into ones that run on biofuels that are less harmful to the environment we will have succeeded. until then we keep pressing on to protect mother earth by economically reducing externalities.
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4 comments:
Great article on externalities! I'll miss all of you, my environmentally-friendly economists... :) :)
Is it even possible to be an eco friendly economists Mrs. M? Either way, it seems hard to understand how their can be an efficient level of externality when negative ones cause harm.
Yes, Dan, possible - but they're a rare breed. :)
There's a class this summer that I might take if I can find $400 sitting around with nothing to do - "Economics and the Environment". I thought of all of you when I saw it. :) :)
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