Sunday, April 25, 2010

Assignment 7 - Part 2

3-4 paragraph analysis of how sustainability was addressed at the level that it was (i.e. state level or regional level or local government level or neighborhood level)

The cited news article talks about how China is investing heavily in green auto technologies. With the increasing debate on global climate change and how this phenomenon is impacting our way of life, many countries are taking a proactive approach to regulate industries in response to lowering their carbon footprint and improve sustainability. With the recent Copenhagen summit on global climate change ending in a less than favorable outcome, it is interesting to see China, which is currently the largest non-cumulative emitter of greenhouse gases, take to the frontlines in reinventing itself as an environmentally conscious country.

Sustainability in the case of the article referenced, is being addressed on a state/national level, with benefits and changes trickling down to regional and local governments where Chinese auto manufacturers operate. The article goes on to state, “Big auto groups backed by government money, such as SAIC, are likely to emerge as winners, industry analysts say, while leading private-sector players, like Warren Buffet-backed BYD, will also be a front runner as it pushes into foreign markets.” It is evident that there is a great incentive for local car manufacturers to increase research in hybrid and electric vehicles.

Since this is a new move by the Chinese government, the success of this sustainability planning is not yet known. However, I believe that the Chinese government, with its abundant economic resources may be in a good position to make this initiative a success. The article also states, “Almost all the major Chinese manufacturers have on-going development programs. Some may be more politically motivated but clearly some are very serious pursuits that are backed by large investments and substantial research teams." Regardless of the motives of the Chinese manufacturers as quoted above, it is evident that almost all of them are on board in increasing the number of hybrid and electric vehicle production.

Another way sustainability is being addressed in a national and regional level is in regards to the price of hybrid/electric cars. China is planning to develop low cost electric vehicles which will be easily acceptable to the Chinese and may even gain success in other countries as well. Currently, “A made-in-China Prius costs as much as $41,000, nearly matching the price tag of much bigger gasoline-powered Camry, making it a turn-off for Chinese buyers, who still have a penchant for big cars.” With the demand for lowering the cost of electric vehicles evident, I believe that the Chinese initiative may eventually be successful. At the very least, I hope this will help increase government funding in other countries.

3-4 paragraph analysis of how the sustainability issue could have been resolved at a different level.

I believe that it would have been beneficial for the Chinese government to address this issue (in addition to the national level) at other levels simultaneously, such as, working with regional and local governments to fund a network of electric vehicle charging stations, working with car manufacturers to make their manufacturing plants more sustainable, increasing use of recycled materials in hybrid and electric cars, and working with local governments to improve car recycling programs.

Although the aforementioned issues I mentioned above may eventually occur over the course of the sustainability initiative by the Chinese government, the article does highlight one of my concerns, “The southern boom town of Shenzhen, where BYD rolled out its plug-in hybrid, F3DM, late last year, has just three charging stations.” It is evident that merely investing in hybrid/electric vehicle production may not improve sustainability in the Chinese auto industry. It needs to be backed by utility companies that can provide energy to charging stations, all of which require the cooperation of regional, local, state, and national governments.

Some of the problems that can occur with implementing a sustainability policy at all levels would be coordinating and planning development activities. Additionally, problems can occur if foreign car manufacturers have incompatible chargers. The article states, “"You can't charge the Leaf at the facilities as the charger just won't fit in. We'll have to have our own facilities when we sell Leaf in Shenzhen," said Tsunehiko Nakagawa, vice president of Nissan China Investment.” I believe that more effort should also be placed on standardizing chargers so that customers are not inconvenienced when it comes to being able to charge their vehicles.

Although, from the current initiative the environmental quality is poised to improve, I believe that addressing some of the issues I have discussed, environmental quality can be improved even further. As mentioned before, by coordinating other related initiatives such as recycling, increasing charging stations, etc. policy makers in essence, would be able to create an infrastructure that is able to sustain the energy needs of hybrid and electric vehicles. This would provide consumers with a greater incentive to charger their cars rather than visit the local gasoline station.

Reference:

LaMonica, Martin. April 21, 2010. “China investing heavily in green auto tech.”
http://news.cnet.com/8301-11128_3-20003049-54.html

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