Effects of Ecological Legislations of Car Industry

Effectsof Ecological Legislations of Car Industry


Effectsof Ecological Legislations of Car Industry

Governmentsaround the world have responded to consumer preference for automotivewith lower carbon emission by formulation and implementation ofstringent legislations that aim to guard ecological stability. Theseregulations vary from one country to another and from one continentto the next, making the efforts to regulate original equipmentmanufacturers to be even more complex. Therefore, original equipmentmanufacturers all over the world are forced to adjust the portfolioof their products now and then in order to meet the varyingregulations of automotive in different regions globally. This hascome at an extra cost every year (Greene&amp Plotkin, 2011).

Inthe world, road transport contributed to about 14% of the totalcarbon dioxide emission. As much as efforts have been me to improveon carbon-dioxide emission by vehicle manufacturers, the emissionsfrom road transport keep increasing annually. This is because notonly is vehicle ownership increasing but people are also coveringmore mileage with increased freight transport. For instance, inEurope alone, mileage increased by about 16% between 1995 and 2004.Additionally, about 15% of the fuel put in vehicles is responsiblefor moving them. The rest is lost in friction during engineoperations (Oberthür&amp Pallemaerts, 2010).

TheCorporate Average Fuel Economy in the US has made it their businessto ensure that automotive manufacturers increase the efficiency ofengines produced. Due to the varying legations on carbon dioxideemission in different states, new legislations such as the AmericaClean Energy and Security Act of 2009 has demanded that OEMs producea single light-duty fleet that has the capability of meeting thedifferent federal legislations on fuel efficiency. Incentiveprogrammers have directed retraining of employees and refurbishing ofmanufacturing plant under the Domestic Manufacturing Convention GrantProgram as an incentive to help firms meet the required efficiency.Additionally, $ 25 Billion has been directed to the vehiclemanufacturing industry as loans to fund projects aimed at loweringemission (Greene&amp Plotkin, 2011).

TheEuropean Union has put high fuel prices compared to those in Americaand other continents to try to curb the use of big engines. This hasforced people to use smaller engine vehicles with high fuelefficiency in order to reduce the cost of transport. The high fueltaxes have also improved the number of mileage covered b drivers eventhough there are no legislations on mileage standards. From 2012onwards, the commission responsible for carbon dioxide emission inthe EU has set the average emission per vehicle to be 120g carbondioxide per kilometer. The EU parliament proceeded to regulate thatall passenger vehicles must keep carbon dioxide emission of not morethan 130 CO2/km,further reducing the requirement. This has forced vehiclemanufacturers to produce engines that are more efficient. By 2020,the parliament is aiming at cutting down further to 95 CO2/km(Oberthür&amp Pallemaerts, 2010).&nbsp

In1999, Japan introduced a Top Runner program that aimed at increasingfuel efficiency. This program`s objective is to identify the vehicleswith most efficiency and directing all the manufacturers to have itas the benchmark in their future ventures. The government has alsoencouraged production of eco-friendly vehicles by providing taxincentives and credit facilities and subsidies. The program promisesto cut the cost of purchasing an eco-friendly vehicle by 100,000 Yenfor a personal vehicle and up to 900,000 Yen for public transportvehicles (Oharaet al., 2007).


Oberthür,S., &amp Pallemaerts, M. (2010).&nbspThenew climate policies of the European Union: internal legislation andclimate diplomacy&nbsp(No.15). ASP/VUBPRESS/UPA.

Greene,D. L., &amp Plotkin, S. E. (2011). Reducing greenhouse gas emissionfrom US transportation.&nbspArlington:Pew Center on Global Climate Change.

Ohara,T. A. H. K., Akimoto, H., Kurokawa, J. I., Horii, N., Yamaji, K.,Yan, X., &amp Hayasaka, T. (2007). An Asian emission inventory ofanthropogenic emission sources for the period 1980–2020.&nbspAtmosphericChemistry and Physics,&nbsp7(16),4419-4444.