Contents
Environmental Concerns
Among the most troubling externalities of the automotive industry is the release of corrosive pollutants into the earth's environment. The following statement by the U.S. Environmental Protection Agency (EPA), illustrates the devastating effects of the problem:
"Driving a car is the single most polluting thing that most of us do. Motor vehicles emit millions of tons of pollutants into the air each year. In many urban areas, motor vehicles are the single largest contributor to ground-level ozone, a major component of smog. Ground-level ozone is the most serious air pollution problem in the northeast and mid-Atlantic states. Cars also emit several pollutants classified as toxics, which cause as many as 1,500 cases of cancer in the country each year. Auto emissions also contribute to the environmental problems of acid rain and global warning." [21]
The United States government began acting to curb the effects of auto emissions in the 1960s. Beginning with the Vehicle Air Pollution and Control Act, Congress began to set industry standards for automotive pollution. The Clean Air Act of 1970, took this initiative a step further, demanding a 90% decrease in auto emissions in six years time. Subsequently in 1975, The Energy Policy and Conservation Act was passed which mandated that all cars meet a standard of 20 mpg by 1980 and 27.5 mpg by 1985.[22]
In recent years, the issue of climate change resulting from greenhouse gas emissions, particularly carbon dioxide emission, has stood at the forefront in the global debate on environmental consciousness and corporate responsibility. In 2005, the Kyoto Protocol entered into force and has since been ratified by a total of 169 countries throughout the world. This agreement sought to "stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system (United Nations)." [23] To accomplish this Kyoto laid forth a plan which dictated that all countries shall reduce their gas emissions by 5.2% of their respective 1990 level, and established a complicated network for emissions trading. However, to this day the agreement lacks certain major adherents, among these are Australia, and the world's most prolific CO2 emitter, the United States. Critics of Kyoto assert that it will stifle economic development and that it is biased towards large developed countries.
Still, as evidence mounts and gas prices rise, many consumers have begun to raise concerns over global climate change and demanded action be taken by leading firms in the automotive industry. American companies have generally focused on current consumption patterns, and thus fuel economy has only become an issue with increased consumer demand in recent years.[24] Many companies have begun to develop alternative fuel technologies to market to a more environmentally conscious consumer base. While American companies have developed hybrid cars, the market is still dominated by Japanese manufacturers who have invested more in research and development for decades.[25] With such a definitive head start it will prove difficult for American corporations to catch up.
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