How Cars Industry Become Green - Essay Example

How Cars Industry Become "Green"? How Cars Industry Become "Green"? “For many years car companies have brought out “green” cars which they claim are the big revolution, which will reduce our usage of fossil fuels” (Martin, 2010). However, none of these green cars seems to be an answer to the problems caused by the automobile industry to the environment. The necessities of protecting the environment are understandable to everybody. It is evident that the sustainment of living things in this world may become difficult in near future itself, if the car industry continues to use fossil fuels.

Many studies have proved that the greenhouse gas emission from automobiles is one of the major reasons for global warming and climate changes like environmental problems. This paper briefly analyses the Impacts on car industry that choose to become green Impacts on car industry that choose to become green “Getting insurance with a car insurance firm which claims to be environmentally conscious could result in premiums which cost up to 146% more than with conventional insurance firms” (Martin, 2010).

Environmental protection is a costly act and therefore any activity that related to environmental protection may cause excess burden to the people. For example, the technology used to produce environmental friendly cars is costlier than the technologies used for other cars. In other words, car dealers may charge more for environmental friendly cars and therefore ordinary people may not purchase those cars. Thus, the sales or business of car industry that chooses to become green may adversely affected.

Electric cars are proposed as an answer to the environmental problems caused by normal cars. However, current infrastructure facilities are inadequate for charging and recharging of such cars. In other words, a car company which chooses to become green should establish recharging outlets across different locations. The costs for the establishment of such recharging outlets may become another financial burden for the company. The plug-in electric vehicle (PEV) market is less than a year old.

Americans have already purchased 50 percent more PEVs than they bought hybrids in the first year those cars were introduced a decade ago” (Greenwald, 2011). Obama administration is encouraging the purchase of environmental friendly cars with the help of programs such as cash for clunkers. “The Cash for Clunkers program gave car buyers rebates of up to $4,500 if they traded in less fuel-efficient vehicles for new vehicles that met certain fuel economy requirements” (Valdes-Dapena, 2009).

However, this program is also currently facing problems because of the shortage of funds. In other words, the administration never thought that the allotted funds may be consumed within weeks. It should be noted that people may not switch over to fuel efficient cars, especially in the current dipping economic climate, if the administration fails to help them financially. In short, a car company which may choose to become green may face lot of problems in the present dipping economic climate. “Obama predicted in 2008 that green cars would create thousands of new U.S. jobs as demand soared.

But in recent months, production lines and sales expectations have been dramatically scaled back” (Leonnig and Stephens, 2012). Conclusion A car company which chooses to become green may face lot of financial burdens since the technology and infrastructure development for environmental friendly cars is expensive. References Greenwald, J. (2011). Give green-car industry a chance to get up to speed. The Washington Post. 15 December 2011. Leonnig, C.D. and Stephens, J. (2012). For Obama’s green-car revolution, fits and starts.

The Washington Post. 29 November 2011. Martin M. (2010). The Future of the Green Car Industry. Retrieved from http://www.environmentalleader.com/2010/12/30/the-future-of-the-green-car-industry/ Valdes-Dapena,P. (2009). Clunkers: Taxpayers paid $24,000 per car. Retrieved from http://money.cnn.com/2009/10/28/autos/clunkers_analysis/index.htm