Basing judgment on affordability and availability of the EVs, the tax incentives and exemptions offered by some government agencies to purchasers due to the high initial costs seems to be an unsustainable venture in emerging economies. There are several options available that mitigates the high initial cost.
Some government agencies have facilities that offer incentives while the federal government extends a tax credit equivalent to 10% or US$4000 whichever is applicable to the initial cost of the green vehicle. In some states, the government exempts customers from paying vehicle license and registration fees. Some are even exempted from paying income tax credit, while others do not pay sales tax (United States Environmental Protection Agency, 2002, para. 3).
Some of these incentives are more likely not to be exploited in the developing economies. The insight I can draw from this scenario is the need for necessary legislation to be implemented in order to attract green production in struggling economies, and more so the developing countries, as well as boost revenue collection necessary for the much desired growth.
To encourage energy efficient mechanisms and embrace energy conservation initiatives in emerging economies, execution of proper planning should be in place to avoid high dependence on imports.
Most of the electric vehicles are likely to be imported, posing a threat to domestic growth. With proper planning and legislation deductions can be made at the point of purchase and directly channeled to the government to support funding for improvement of other sectors that may not have embraced green energy (Maxton & Wormald, 2004). Verification of all benefits accrued through the improvements will make the tax benefits a sustainable venture that can propel the economy higher.
Insights on Green Automotive Development
I found Scott’s article to be useful because the concept of manufacturing vehicles that 100 percentage green is new to me. For instance, I was not aware that Hydrogen can be extracted from water and used as an alternative source of fuel to drive cars, thereby curbing dependence on foreign and fossil fuels. However, I think this may not be sustainable because the technological requirements of extracting Hydrogen from water do not exist. It is a very daunting task to extract hydrogen from water and it also does not occur naturally.
It is also a new concept to learn that EVs are safer than gasoline-powered vehicles. This makes an ideal substitution for Countries that register a high number of deaths through road accidents (Clean Alternative Fuels, 2002, para. 4). I can therefore deduce that when accidents decline the amount that would have been spent on treatment and repairs can then be channeled towards improving the existing infrastructure or developing new infrastructure in developing countries.
By reviewing the evolution of the automobile industry, it is insightful that the automobile industry has shaped societal growth and caused tremendous changes in the society. The movement of people from urban areas to suburbs has led to the opening up of new towns and opportunities.
Relevance of the Insights
The continual rise in fuel price has been a hard time for motorized car owners. This has in turn compelled manufacturers to come up with a solution to this problem by looking for greener solutions. Presence of EV vehicles and hybrid cars is an evidence of their efforts. Since hybrid cars have petrol and an electric engine, as a result, the two engine compliments each other at the various levels of speed.
At higher speed, the electric motor performs the function of a generator as the car is pushed by petrol and at low speeds the generator charges the electric battery. On the other hand, electric cars can be easily customized due to the easy assemblage of the various components of the vehicle. Due to the use of motor controllers and electric motors for impulsion in place of other general propulsion methods that are not environmental friendly, Evs pose to be the better option.
Although green cars are expensive compared to the conventional gasoline-petrol powered vehicles, they will definitely create tough competition in the automotive industry.
Several business opportunities are therefore presented as discussed below. Renewable energy production of the EV battery types is an opportunity that should be tapped into especially in countries where incentives on energy production are offered. This is a potential revenue stream for people who are unemployed.
If the government can permit the installation of battery charging points in retail outlets and along major highways, more job opportunities will be created. Installation of battery charging points will promote similar renewable energy such as solar panels, wind, biomass and alike without being dependant on electricity for charging. Policy formulation and lobbying can also be an opportunity to restructure Tax Reinvestment Acts.
Carbon Legislation is another avenue that can be explored. To reduce carbon emissions, companies will be compelled to hire consultants to advice on the right green investment choices (Vergragt, Nieuwenhuis & Wells, 2004, p. 4). System Planning and IT systems will also be developed to capture carbon emissions for regulation purposes. Tax consultancy firms can also take advantage of the available incentives to coordinate expertise based on the existing local jurisdiction.
Giving awards to companies that manufacture green cars is motivator towards environmental leadership initiatives. Diverse and innovative designs of these vehicles enhance better environmental performance due to their fuel efficiency and reduced emission.
Manufacture of on -board battery packs is another opportunity that can be tapped into.
With the maintenance and assemblage of EVs being relatively easy it easier to manufacture compared to conventional gasoline or diesel powered cars.
Providing charging facilities across other urban areas for people travelling long distances would be a viable business opportunity other sources of renewable energy like solar panels and wind energy being readily available would be a unique revenue stream for economies. It is therefore important to encourage energy efficient mechanisms and embrace energy conservation initiatives in emerging economies, execution of proper planning should be in place to avoid high dependence on imports.
Most of the electric vehicles are likely to be imported, posing a threat to domestic growth. With proper planning and legislation deductions can be made at the point of purchase and directly channeled to the government to support funding for improvement of other sectors that will not have embraced green energy. Verification of all benefits accrued through the improvements will make the tax benefits a sustainable venture that can propel the economy higher.
Offering tax incentives to citizens who own vehicles that emit less carbon like the hybrid and electric cars should be encouraged because presently, the automotive industry is facing a serious crisis and this helps create a rejuvenated hope for the new cars
According to Lindsey, a self sustaining power source for vehicles would be the most ideal; however this is not easily achievable considering the available technology.
Cost effectiveness should therefore be considered before purchasing the electric or gas electric hybrid. Saving on costs can take a very long time before covering the price difference in comparison to the desired period of replacement. Vehicle safety is also a critical factor when making a purchase to reduce accident risks.
Technological changes in the motorized transport industry have come with several changes ranging from social, cultural and regulatory.
However, the personalized and motorized transport has contributed to slow progress towards sustainability. The cumulative changes have contributed to personal freedom in the industry which in turn has had detrimental and unsustainable environmental effects that should be addressed through government policies and regulations. With the introduction of EVs, the risk of vehicles producing pollution is eliminated but the power plants that generate electricity to charge the batteries regularly for long hours still produce pollution.
Slow battery recharge time, inconvenient disposal of batteries, heavy weight and dependence on heavy power grids of the vehicles are some of the factors that have contributed to the slow uptake of these innovations. Hydrogen fuel presents itself as the most promising alternative source of fuel because nothing is burnt and the byproducts are reusable that is water and heat.
Oil experts have predicted that in the near future, we are likely to be faced with a shortage of fossil fuels. On the other hand, opponents of this theory argue that this is nothing but an artificial shortage created by the oil experts with the intention of ensuring that oil prices remains high.
Burning of petroleum products pose a real danger to the environment and for this reason, there is need to come up with products that have a much less negative effect on our environment, such as encouraging people to embrace energy efficient mechanisms and energy conservation initiatives especially in the emerging economies.
Clean Alternative Fuels, (2002). Clean and alternative fuels. Retrieved March 31, 2011, from
Maxton, G., & Wormald, J. (2004). Time for a model Change: Reengineering the Globa. Automotive Industry. Cambridge: Cambridge University Press
United States Environmental Protection Agency. (2002). Clean alternative fuels. Retrieved March 31, 2011, from
Vergragt, P.J,, Nieuwenhuis, P. ,& Wells, P (2004). Technological change and regulation in the car industry, GMI Theme Issue, Tellus Institute, USA. Retrieved March 31, 2011,