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Car manufacturers make their own green technology choices regardless of policy

Car manufacturers make their own green technology choices regardless of policy

Policies did not determine the types of low emission technology choices made by some of Germany's leading automotive manufacturers.

Over the last few decades the automotive industry has experienced a number of challenges including fluctuating oil prices, air quality issues and the effects of vehicle emissions on global warming.

Previous studies have emphasized the strong role that global policy plays in influencing manufacturers to develop low emission technologies such as vehicles powered by batteries and fuel cells. However, there has been no definitive research to determine the impact of these Government policies.

Now, researchers from Imperial have analyzed the factors that trigger car manufacturers to focus on developing low emission vehicles. They studied three main German car manufacturers – Daimler, BMW and Volkswagen (VW). Their analysis suggests that policymakers in Germany and further afield in countries such as the USA have had only limited influence on the low emission technologies chosen by these manufacturers.

In the study, the team found that demand from consumers and the success of competitors in rolling out specific low emission technologies, not policy, prompted all three companies to embark on a path towards their own low emission vehicles. Particular events such as such as the introduction of a new CEO or collaborations with external companies were also other factors that spurred them on to develop low emission vehicles.

The researchers acknowledged that emission regulations also had an effect on all three companies, encouraging them to embark on developing low emission technologies. However, these activities only led to incremental developments, where they further developed low emission solutions that were already being worked on in-house by each company. The researchers speculate that the reason that change only happened incrementally was because of the in-house expertise of each company, where the engineers were experienced only in fossil fuel based engine technologies, which influenced the pace and direction of developments.

The team say that although the observations made in the study are general in nature and the sample on which they are based is relatively limited, the results still provide valuable insight into the lack of impact that global policies have had on the automotive industry and what limitations exist.

The researchers suggest that policy making is still useful in terms of helping to guide the automotive industry. However, rather than trying to force companies to choose specific low emission technologies, governments should provide the regulatory landscape that enables automotive manufacturers to adopt low emission systems best suited to their business. They believe this would make policy changes less disruptive and more of a welcome enabler for the industry.

Source: journal Environmental Innovation and Social Transitions.


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