Environmental Impacts Associated with the Production and Consumption of Motor Vehicles - Case Study Example

Environmental Impacts Associated with the Production and Consumption of Motor Vehicles Name Name of Institution Environmental Impacts Associated with the Production and Consumption of Motor Vehicles Introduction The focus of this paper is on the environmental impacts attributed to the production, consumption, disposal, and recycling of motor vehicles. Personal transport has become more prevalent over the past decades as a result of cheaper vehicles and extensive road infrastructure. The past few decades have also been synonymous with massive amounts of environmental degradation with motor vehicles playing a considerable part in this degradation. Despite the consensus on the negative environmental impacts of motor vehicles, their production and use continue to increase due to factors like the lower cost of raw materials and the growing world population. According to the International Organization of Motor Vehicle Manufacturers, the past few years have witnessed a steady increase in global vehicle manufacturing (OICA, 2016a). Data shows that the total production rose from 79.88 million vehicles in 2011 to 90.78 million vehicles in 2015. When it comes to Sales, there was significant growth from 66 million to 88 million between 2005 and 2014 that was only punctuated by the 2008-2009 financial crisis (OICA, 2016b). The increased manufacturing, use, and disposal of motor vehicles at a time when the world needs to protect the environment provides the rationale for the choice of motor vehicles as an area of study. The paper will offer an overview of the concept of sustainable development. This will be followed by an in-depth look at the environmental impacts of motor vehicles across the production, consumption, and disposal stages. The conclusion will provide a discussion on the strategies that can be used to alleviate the environmental impacts of motor vehicles. Literature Review According to Sachs (2015, p. 5), sustainable development is development that caters to the needs of the present while not compromising the capacity of future generations to meet their needs. Sustainable development can also be defined as an objective that rejects policies that will lead to the maintenance of current living standards by depleting natural resources and leaving future generations with greater risks and reduced prospects (Pearce, Barbier, & Markandya 2013, p. 4). Sachs (2015, p.4) expands this definition by noting that sustainable development should result in a society that has economic prosperity, good governance by businesses and governments, socially inclusivity, and environmental sustainability. It is worth acknowledging that the world faces enormous problems. For instance, the population has surpassed the 7 billion mark with each individual seeking economic prosperity and access to dwindling resources like food, shelter, safe water, and healthcare. Sustainable development is a concept that aims at resolving these and other issues facing the world. The sustainable development concept can be traced to the 1972 UN Conference on the Human Environment. The conference defined the rights of individuals to have a healthy and productive environment, sound housing, safe water, and adequate food (United Nations Conference on Sustainable Development 2011). The International Union for the Conservation of Natural Resources provided a further precursor to the concept of sustainable development in 1980. This was through highlighting the interdependence between conservation and development where development can only be achieved through caring for the planet. The UN adopted measures such as the World Charter for Nature and the World Commission on Environment and Development to introduce changes related to economic, social, environmental, and cultural issues (United Nations Conference on Sustainable Development 2011). The sustainable development concept continued to grow with the 1992 Rio Earth Summit enumerating the principle that today’s development should not impinge on the needs of future generations (Sachs 2015, p. 5). The 2002 World Summit on Sustainable Development led to the creation of a more practical approach to sustainable development that included social, economic, and environmental aspects. This was reaffirmed in the 2012 Rio+20 Summit that culminated in the creation of sustainable development goals (Sachs 2015, p.6). Based on the evolving definition of sustainable development, a sustainable business would be defined as a business that manages its environmental, social, and economic risks. Blowfield (2013, p. 7) defines corporate sustainability as an approach that facilitates long-term shareholder value through embracing the opportunities and risks from social, environmental, and economic developments. The concept of sustainable development has been the subject of considerable debate as it extends to how businesses should be managed. On the one side, there are arguments that the role of business is to maximise profits regardless of the impact on society and the environment. In contrast, there are those that argue that there is a correlation between adopting sustainability and economic growth over the long term. For example, Ameer and Othman (2012) studied top global firms and found that companies that those that attend to the ecosystem, society, and environment got better financial performance regarding sales growth, return on assets, profits, and cash flows when compared to firms that did not attend to these responsibilities. In addition to economic growth, consumption is also related to sustainability. According to Blowfield (2013, p. 264), it is difficult to attain a balance between production, consumption, and resource efficiency. In particular, the need for sustainable consumption comes with the challenge of deciding whether individuals should consume more and whether business causes over-consumption. Furthermore, there is the issue of the difficulty in changing consumer behaviour. There is also considerable differences in approaches to sustainable consumption with some maintaining the position that the culture of consumption should be stopped. Others claim that the best approach to sustainable consumption is altering and reducing consumption (Blowfield 2013, p. 282). The concept of sustainable development is also related to efficiency. By definition, sustainable development focuses on the management of natural, raw, informational, and energy resources to lead to economic growth and a better quality of life and environment. From this view, there is an implicit relationship between sustainability and efficiency whereby the efficient use of resources will cater to present and future needs of human society. An important aspect of sustainable development is measuring the impacts of products and services on the environment. There are different approaches to environmental impact assessment. Life cycle impact assessment is one of the major approaches that is relevant to products and services whose life can be broken down into distinct stages. This approach will apply to the evaluation of motor vehicles given that their life cycle can be broken down into the production, consumption, and disposal and recycling stages. Environmental Impacts of Motor Vehicles The role of motor vehicles in the present world cannot be understated. Since their development, cars have become the preferred means of travel and have connected remote areas to the external world. The spread of economic development to most corners of the globe and the rapid rise in the global population have increased demand for motor vehicles. Advances in technology and a global supply chain has allowed vehicle manufacturers to produce record numbers of vehicles in recent years. Notwithstanding the importance of vehicles to modern life, their production, use, and disposal have led to negative impacts on the environment. The life cycle approach to environmental impact assessment provides a valuable way of enumerating the impacts of vehicles on the environment. These impacts are evaluated in three distinct stages. Production Stage The production stage covers the sourcing of raw materials, the actual assembly of the motor vehicles, and the supply chain that delivers these vehicles to the customers. The International Association of Vehicle Manufactures shows that the levels of production have increased and continue to increase to record levels. In 2004, the total vehicle production was 64,496,220 vehicles with the number rising to 89,776,465 in 2014 (OICA 2016a). This represents an increased annual production of over 25 million vehicles within a decade. The tremendous increase in production means that the environmental impacts will be greater in the sourcing of raw materials, assembly, and the supply of vehicles to end users. The production of a vehicle begins at the planning stage where manufacturers come up with new ideas and develop prototypes. This is followed by the actual production that relies on numerous raw materials that have to be extracted from the earth. These resources include iron ore, sand, petroleum, rubber, glass, and plastics. The extraction of these resources uses a lot of energy resulting in emissions that are detrimental to the environment. The problem is compounded by the processing of these raw materials, where for example iron ore is subjected to very high temperatures to create steel. These processed materials then have to be fabricated to meet the needs of the vehicle manufacturers, which is a process that consumes more energy. There is also the environmental degradation that comes with transporting the steel, aluminium, rubber, plastics, and other materials to the vehicle assembly points. When it comes to the assembly stage, vehicle manufacturers have a carbon footprint that is unrelated to the actual construction of vehicles. Global leaders in the industry like Toyota and General Motors have offices around the world in addition to other infrastructure that consumes massive amounts of energy leading to environmental degradation. In particular, firms that are located in countries that rely on coal as a primary source of energy will have a greater impact on the environment. The UK and China are examples of countries that rely on coal for electricity generation, a factor that extends the overall environmental impacts of maintaining large operations and taking part in the actual manufacturing of vehicles (Bomford 2013). The vehicle assembly points are also a major source of pollution. It is worth acknowledging that the assembly points use parts that are sourced from other plants that specialise in casting, engine, stamping, and transmission parts. However, the final assembly points use more energy that the specialised plants that contribute finished parts. In the case of the US, natural gas and electricity are the major sources of energy used in vehicle assembly with fuels taking up 60-69% of total energy use. This generates considerable amounts of emissions, with evaluations showing that 34 US manufacturers alone reported 2 million metric tons of carbon dioxide in direct emissions (U.S. Environmental Protection Agency 2015). The indirect emissions from plants outside the control of the manufacturers were significantly higher at 4.4 million metric tonnes, giving the industry a total of 6.4 million metric tonnes in emissions from 44 assembly plants (United States Environmental Protection Agency 2015). According to Lloyd and Lave (2003), assembly plants also release sulphuric acid and other smokestack emissions to the immediate air. Other detrimental consequences of motor vehicle assembly plants include altering the direction of water flow and the release of contaminants like paint into nearby sources of water. The final part of the vehicle production stage covers the distribution of vehicles to the end consumers. Globalization has meant that firms can manufacture millions of products with the knowledge that the products can be sent to any corner of the world. As stated, sales figures from the International Organization of Motor Vehicle Manufacturers show that 88 million vehicles were sold in 2014 alone (OICA 2016b). It is worth noting that there is a vibrant second-hand car sales market that ships millions of used vehicles within and across national borders. In the case of the UK, data shows that annual new car sales have remained at approximately 2 million vehicles over the past decade. In contrast, the number of used cars that have been sold in the same period has remained near the 7 million level (Statistica 2016). The transportation and storage of new and used vehicles culminate in the use of massive amounts of energy from fossil fuels, causing considerable environmental damage across the world. Consumption Stage According to Messagie et al. (2014, p. 1470), the use stage of motor vehicles can be split into the Well-to-Tank and the Tank-to-Wheel sections for the purpose of assessing the environmental impact. The Well-to-Tank (WTT) approach focuses on the extraction, processing, and distribution of the fuel that is used to power vehicles. It is arguable that this stage can also apply to hybrid and electric vehicles. In this case, the section will cover the manufacture of the batteries and how electricity that is used to charge the electric vehicles is generated. This is important since data shows that the manufacture of the lithium-ion batteries can have a greater impact on the environment than conventional motor vehicles (Bomford 2013). The Tank-to-Wheel (TTW) approach is concerned with evaluating the environmental damage that comes from the use of the fuel by the vehicle. In the case of electric vehicles, there is a consensus by governments that their use can help in curbing emissions and mitigating climate change (Bomford 2013). However, it is worth noting that the use of coal for electricity generation will eliminate any advantage that might come from the reduced emissions from electric vehicles. Having enumerated the WTW and TTW approaches to assessing the environmental impact of motor vehicles, it is necessary to examine some of the environmental impacts that are associated with the increased consumption levels. According to Harrison (1996), there is the issue of noise pollution especially in urban areas that are congested. The increased consumption of vehicles also has a direct consequence on the pace at which finite natural resource are depleted (Harrison 1996). This is because transport plays a pivotal role in trade, meaning that an efficient transport system will allow firms to extract natural resources like minerals at a faster rate. This has the effect of spreading environmental impacts to wider areas of the globe because of the ease with which natural resources can be transported. The most significant environmental impact of motor vehicle use comes from emissions. First, emissions from motor vehicles contribute to the problem of smog which reduces visibility and has an adverse impact on animals and plants (Fu & Xu, 2012, p. 85). Motor vehicle consumption also makes a significant contribution to the creation of acid rain. The release of carbon dioxide, carbon monoxide, nitrous oxide, and methane is also considerable with these gases contributing to global warming. According to the US Environmental Protection Agency, motor vehicles account for over half of the emissions from the entire transport sector. In the case of the UK, cars accounted for 13.4% of the total CO2 emissions in 2012. This amounted to 63.7 million tonnes, a significant reduction from the 75 million tonnes emitted in 2000 (Society of Motor Manufacturers and Traders 2016). Despite the reduction, the levels remain significant and will continue to have negative impacts on the environment through acid rain, the greenhouse effect, and deterioration of building materials and structures. Other environmental impacts of vehicles include contamination of water through vehicle runoff, where metals like lead can pose a threat to the quality of drinking water supplies. Additionally, the runoff poses a threat to the diversity of aquatic species. The use of salt in de-icing of roads also affects the ecosystem (Fu & Xu 2012, p. 91). UK CO2 emissions by source (Society of Motor Manufacturers and Traders 2016) Disposal and Recycling Stage According to Rees (2010), two million vehicles are disposed of annually in the UK with only half of them being disposed of through approved channels. The problem is further compounded by the fact that over 350,000 are abandoned every year. This is a significant problem that illustrates the need to examine a product’s entire life cycle when conducting an environmental impact assessment. The abandoned cars leak heavy metals and rust with massive amounts of oil and brake fluid being poured into drains (Rees 2010). There is also the toxic debris from brake and tire particles in addition to the discharge of the paint and coating that is applied to motor vehicles. Typical vehicles contain lead-acid batteries with the hybrid vehicles using lithium-ion batteries. The lead-acid batteries often fail to get the proper treatment when vehicles are disposed of due to factors such as lack of knowledge on how to handle them (U.S. Environmental Protection Agency 2016). The more complicated batteries that are used in hybrid and electric cars pose an even greater threat to the environment as the number of these vehicles continue to increase. As stated, half of the vehicles that are disposed in the UK make it to authorised disposal channels. According to Gerrard and Kandlikar (2007), Europe enforced an End-of-Life legislation that aimed at mitigating the environmental impacts of vehicle disposal. An evaluation of the initiative found that it had a positive impact on innovation in recycling techniques. However, there was a challenge where vehicle manufacturers do not value end-of-life considerations during vehicle design (Gerrard & Kandlikar 2007, p. 26). The implication is that despite the noteworthy efforts to recycle, there are parts that cannot be reused resulting in automotive shredder residue that is harmful to the environment (Castro, Remmerswaal, & Reuter 2003). These include rubber, plastic, and cloth that might be contaminated with toxic substances like lead, cadmium, and mercury. In summary, the end of life stage has the potential to reduce the rate at which natural resources like iron are being extracted. However, inadequate enforcement of laws and lack of cooperation from manufacturers will mean that end-of-life vehicles will continue harming the environment. Finally, an evaluation of the three stages of the life-cycle of motor vehicles shows that the consumption stage has the most significant impact on the environment. How Environmental Impacts can be Mitigated Motor vehicles have a pronounced effect on the environment across their entire life cycle. The significance of negative impacts like greenhouse gases and the depletion of the ozone layer means that collective effort is necessary to mitigate the impacts. It follows that businesses, consumers, NGO’s, and the government should play a role in reducing this impacts. In the case of businesses, they can concentrate on increasing the efficiency of their supply chains to reduce the carbon footprint. Businesses can also embrace hybrid and electric vehicles to reduce demand for fossil fuels. A similar approach can be taken by consumers through the purchase of technically advanced and innovative electric vehicles like the Tesla range. However, this tactic should only be implemented if the country produces its electricity from clean sources of energy. Other strategies that can be used by consumers include moving to fuels that emit less carbon dioxide, changing driving behaviour, and ensuring proper vehicle maintenance. Alternatively, consumers can move to alternatives like high-speed rail transport in urban areas to reduce road congestion that increases emissions to extremely high levels. Governments can mitigate the environmental impacts through legislation. As stated, the end-of-life legislation that applies to Europe is an example of legislation that has been successful in reducing the impacts of cars across their life cycles (Gerrard & Kandlikar 2007). Carbon taxes can also be applied to the consumption stage, with evidence from its use in Canada’s British Colombia showing that the strategy can reduce fuel use by 16% while reducing emissions at a rate that is 3.5 times faster than the rest of the country (Fragoso 2016). The carbon tax has also proven to be sustainable through fostering economic growth and facilitating a transition to a clean energy economy that is beneficial to society and the environment. NGO’s can play a role in alleviating the environmental impacts of motor vehicles through providing funding for research on alternative and clean sources of energy. The leading manufacturers of motor vehicles also have a pivotal role in ensuring that they offer products that are sustainable. Innovative firms like Tesla have shown that technology can be leveraged to allow manufacturers to attend to the triple bottom line. As stated, there is an implicit relationship between sustainability and efficiency whereby the efficient use of resources will cater to present and future needs of human society. As such, one of the strategies that might be used to reduce the environmental impacts of motor vehicles can involve making vehicles more efficient. However, there is the threat of the rebound effect where an increase in efficiency will lead to more travel, leading to increased use of fossil fuels and greater environmental impacts. Estimations of the rebound effect have shown that a 1% increase in fuel economy generates a 0.2-0.4% increase in the miles travelled (Linn 2013, p. 21). Despite this rebound, there is evidence that the rebound rate gets smaller since rising incomes have reduced the significance of fuel costs when making decisions about travel (Small & Van Dender 2007, p. 31). As such, vehicle manufacturers should focus on improving efficiency to increase the sustainability of vehicles. Conclusion In conclusion, this paper has provided an overview of the concept of sustainable development and explained its origin. The life cycle approach to environmental impact assessment has been adopted to enumerate the environmental impacts of motor vehicles. The finding is that the consumption stage of the life cycle has the greatest impact on the environment. This is through the dire environmental impacts that come with the extraction of fuels and the manufacture of batteries for hybrid and electric vehicles. Additionally, the actual combustion of fuel is a major contributor to the emission of greenhouse gases, depletion of the ozone layer, noise, smog, acid rain, and increased extraction of natural resources. When it comes to the production stage, the essay notes that motor vehicles damage the environment through the energy used in resource extraction, vehicle assembly, and distribution. Finally, insufficient enforcement of existing legislation has meant that the environmental impacts of motor vehicles extend to the disposal stage. Here, the environmental is impacted through the leakage of heavy metals, improper disposal of batteries, and automotive shredder residue. Despite the many negative impacts, there are strategies that can help to mitigate the effects of motor vehicles on the environment. The strategies include legislation like the end-of-life rules on vehicle recycling and the carbon taxes that have been successful in British Columbia. Technology innovation in the areas of efficiency and alternative source of clean energy can also assist in mitigating the environmental damage arising from motor vehicles. Finally, decreased consumption and the adoption of alternatives like high-speed rail and cycling in urban areas can be effective. References Ameer, R. and Othman, R., 2012. Sustainability practices and corporate financial performance: A study based on the top global corporations. Journal of Business Ethics, 108(1), pp.61-79. Blowfield, M., 2013. Business and sustainability. Oxford University Press. Bomford, A., 2013. How environmentally friendly are electric cars?. BBC News. Retrieved from http://www.bbc.com/news/magazine-22001356 Castro, M.B., Remmerswaal, J.A. and Reuter, M.A., 2003. Life cycle impact assessment of the average passenger vehicle in the Netherlands. The International Journal of Life Cycle Assessment, 8(5), pp.297-304. Energy Start Industrial Highlights: Automobile Assembly Plants, 2015. 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