Plug-in hybrid Essay Example for Free

Plug-in hybrid Essay Abstract This paper focuses on the hybrid car technology, government support programs, environmental effects and the demand for hybrid vehicles in the United States. Research was done in the areas of environmental effects of driving hybrid car, income tax incentives for qualified buyers unstable petroleum supplies, and growing concern about global pollution. Hybrid cars tax credits data were analyzed to examine the tax income deduction of purchasing this type of vehicle. The government needs to continue to offer incentives to new buyers of hybrid vehicles to offset the higher cost of these vehicles relative to their non-hybrid counterparts. Hybrid cars and other eco-friendly products are vital to the survival of the earth and the United States and the rest of the world must continue to regulate the emissions without hurting the economy. Demand for the Hybrid Vehicles Demand for the hybrid vehicles in the United States has increased since the introduction in the U. S. market in 2000. The first hybrid car was introduced in Japan in 1997 by Toyota Prius. Three years later, Honda introduced the first hybrid car Honda Insight into the U. S. market. By 2008, other car manufactures entered the hybrid market including Ford, GM, Honda and Nissan. Today, they are four main types of electric cars available on the market which include hybrid electric vehicles, plug-in hybrid electric vehicles, extended-range electric vehicle and battery electric vehicles. Demand for Toyota’s Prius hybrid car increased over the last few years and by supply and demand, Toyota responded by raising the price and increase production. In 2003 and 2004 Toyota made100,000 Prius and in 2007 they made 200,000 hybrid cars. 3 In 2012 Toyota Prius Plug-in hybrid is the third fastest-selling car in U. S. Toyota was successful because of strong branding and unique design of Prius. The hybrid vehicles are solution to energy security and environmental protection. These vehicles reduce CO2 emission and air pollution. They combine power from both gasoline engine and an electric motor that runs off the electricity from a rechargeable battery. 1 Hybrid cars produce less pollution because the combination of battery power and internal combustion decrease the emission of carbon dioxide and other harmful gases. 1 Electric motors use no energy during idle and use less than gas motors at low speeds. Hybrid cars have a regenerative braking, stop- start system, low-rolling resistance tires and power conservative hardware. 1 All these features allow the hybrid cars to recycle energy. Energy produced by hybrid is recycled from brakes and used in acceleration. Hybrid car can save money on gas especially in city driving because stop and go driving helps hybrids recharge by capturing the energy generated during braking. Hybrid cars are in high demand but they are not easy to find and some car dealerships struggle to meet demand. Recent earthquake in Japan made it even more difficult for hybrid cars supplies because the best-selling hybrid cars in the United States Toyota Prius is made exclusively in Japan. Table 1 shows the number of Hybrid Models offered and the sales history from 2000 to 2007. 1 Table 1 HISTORY OF HYBRID VEHICLES YearNo. of Hybrid Models Offered HybridNew Vehicle Sales Sales in Million 200029,36717. 41 2001220,28717. 18 2002335,96116. 85 2003347,52516. 68 2004483,15316. 91 20058209,71117. 00 200610251,86416. 56 200715345,92016. 09 Environmental Effects. The need to develop green technologies comes from the fact that the global climate is changing due to everyday large amounts of pollutants that are released into atmosphere which leads to global warming. Global warming is a serious problem that can cause major issues such as the melting of polar ice caps and a rise in sea level. Every car produces emissions while being made and while driving on the road. There are many governments regulations placed on industries to reduce the amount of emissions released into atmosphere. Once the hybrid cars become more popular and affordable among consumers they can help reduce automobile emission. When people buy cars they take into consideration many things. They look into price, performance, safety and expenditure on gasoline which is determined by the vehicle’s fuel efficiency. Hybrid cars are expected to reduce the cost of fuel by recharging batteries from electrical outlets. Many buyers today are also interested into saving our planet and there is a growing demand to buy hybrid vehicles. Hybrid cars offer many green advantages. In large cities were pollution is high, they produce very little emission during low speed city driving. Hybrid cars can help the country reduce dependency on foreign crude oil and save money in the long term. United States imports almost half of the oil and gas from Middle East. Organization of the Petroleum Exporting Countries (OPEC) sets the price depending how much they have at its disposal. Many countries don’t have choice but to pay the price set by OPEC, regardless of supply and demand factors. If consumers purchase more hybrid cars, the dependency on foreign oil will decline and energy prices will drop. In 2012, US motor gasoline consumption was 8. 5 million barrels per day. 4 If the consumption of gasoline continues at the rate it has during the last few decades, oil reserves will not meet demand in future. Countries will need to look for new wells across the world and this can lead to damages of our ecosystem. By using hybrid cars, oil consumption is reduced and there will be no need to start a search for new oil wells. The environmental benefits of hybrid cars also include increased health for people . Use of oil products releases more pollution into the air that can cause cancers and lung diseases. Government Support The U. S. government has been providing hybrid vehicles buyers with income tax incentives to offset the higher cost of hybrid vehicles relative to their non-hybrid counterparts. 2 The hybrid vehicles is considered a promising technology by the National Energy Policy Development Group (2001), and their recommendation was to increase demand of hybrid vehicles in order to achieve economies of scale to bring the cost of hybrid vehicles down. 2 This group also recommended that government should provide a â€Å"clean fuel† tax deduction up to $2000 for the purchase of new hybrid cars during 2001-2005. The Energy Policy Act of 2005 replaced the income tax deduction with an income tax credit of up to $ 3,400 for vehicles purchased after December 31, 2005. The credits phased out after a manufacturer sold 60,000 of a hybrid model starting from January 1, 2006. As the Dec. 31, 2010, end for all credits neared, only a few hybrids still qualified for the credits. 2 In 2012 there are still some tax incentives for new plug-in hybrid cars purchases for up to $7500 in tax deduction for qualified buyers. Hybrid Federal Tax Credit 2009 12009 Cadillac Escalade Hybrid 4dr SUV (6.0L 8cyl gas/electric hybrid 4A). $2,200 22009 Cadillac Escalade Hybrid 4dr SUV 4WD (6. 0L 8cyl gas/electric hybrid 4A)$1,800 32008 Chevrolet Malibu Hybrid 4dr Sedan (2. 4L 4cyl gas/electric hybrid 4A)$1,300 42009 Chevrolet Malibu Hybrid 4dr Sedan (2. 4L 4cyl gas/electric hybrid 4A)$1,550 52009 Chevrolet Silverado 1500 Hybrid 4dr Crew Cab w/1HY SB (6. 0L 8cyl gas/electric hybrid 4A)$2,200 62009 Chevrolet Silverado 1500 Hybrid 4dr Crew Cab 4WD w/1HY SB (6. 0L 8cyl gas/electric hybrid 4A)$2,200 72009 Chevrolet Silverado 1500 Hybrid 4dr Crew Cab w/2HY SB (6.0L 8cyl gas/electric hybrid 4A)$2,200 82009. Chevrolet Silverado 1500 Hybrid 4dr Crew Cab 4WD w/2HY SB (6. 0L 8cyl gas/electric hybrid 4A)$2,200 92008 Chevrolet Tahoe Hybrid 4dr SUV (6. 0L 8cyl gas/electric hybrid 4A)$2,200 102008 Chevrolet Tahoe Hybrid 4dr SUV 4WD (6. 0L 8cyl gas/electric hybrid 4A)$2,200 112009 Chevrolet Tahoe Hybrid 4dr SUV (6. 0L 8cyl gas/electric hybrid 4A)$2,200 122009 Chevrolet Tahoe Hybrid 4dr SUV 4WD (6. 0L 8cyl gas/electric hybrid 4A)$2,200 132009 Chrysler Aspen Limited HEV 4dr SUV 4WD (5. 7L 8cyl gas/electric hybrid 4A)$2,200 142009 Dodge Durango Limited HEV 4dr SUV 4WD (5. 7L 8cyl gas/electric hybrid 4A)$2,200 152008 Ford Escape Hybrid 4dr SUV (2. 3L 4cyl gas/electric hybrid CVT)$1,500 162008 Ford Escape Hybrid 4dr SUV AWD (2. 3L 4cyl gas/electric hybrid CVT)$1,100 172009 Ford Escape Hybrid 4dr SUV (2. 5L 4cyl gas/electric hybrid CVT)$1,500 182009 Ford Escape Hybrid 4dr SUV AWD (2. 5L 4cyl gas/electric hybrid CVT)$975 192009 Ford Escape Hybrid Limited 4dr SUV (2. 5L 4cyl gas/electric hybrid CVT)$1,500 202009 Ford Escape Hybrid Limited 4dr SUV AWD (2. 5L 4cyl gas/electric hybrid CVT)$975 212010 Ford Fusion Hybrid 4dr Sedan (2.5L 4cyl gas/electric hybrid CVT). $1,700 222009 GMC Sierra 1500 Hybrid 4dr Crew Cab w/3HA SB (6. 0L 8cyl gas/electric hybrid 4A)$2,200 232009 GMC Sierra 1500 Hybrid 4dr Crew Cab 4WD w/3HA SB (6. 0L 8cyl gas/electric hybrid 4A)$2,200 242009 GMC Sierra 1500 Hybrid 4dr Crew Cab w/3HB SB (6. 0L 8cyl gas/electric hybrid 4A)$2,200 252009 GMC Sierra 1500 Hybrid 4dr Crew Cab 4WD w/3HB SB (6. 0L 8cyl gas/electric hybrid 4A)$2,200 Hudson 2010 2 Advantages and Disadvantages of Hybrid Cars A list of advantages and disadvantages of hybrid vehicles include: Advantages †¢Reduce emission. †¢Lessen dependence on foreign oil †¢Tax incentives to purchase hybrid cars †¢Environmentally friendly †¢Performance benefits: hybrid cars provide quite, smooth operations and stronger acceleration. †¢Reduce energy dependence from foreign sources Disadvantages †¢Battery cost: The battery of hybrid cars is very expensive and it has to be replaced every 80,000miles. The average cost to replace this battery is between $ 6,000 and $10,000. People who travel a lot will not benefit from driving the hybrid car. †¢Recharge time: Fully recharging the battery pack can take four to eight hours. †¢Bulk and weight: Battery packs are heavy and take up considerable vehicle space. †¢Slow acceleration: Hybrid cars have much slower acceleration times than a traditional cars that only use gasoline. †¢Low resale value: Hybrid cars have low resale value because of the costly batteries used in the hybrid cars that have to be replaced regularly. †¢Short supply: Because these cars are expensive their supply parts are available in different parts of the country. Present and Future for Hybrid Cars The future looks bright for hybrid cars because price of oil will probably continue to rise and the impact that fossil fuels have on the earth’s environment. Incentives, such as tax credits for purchasing a hybrid cars and grants for researching new battery technologies, will continue to improve their performance and make hybrid cars more attractive and competitive. The most recent hybrid technology is â€Å"plug-in hybrid car. This hybrid model offers the same benefit as hybrid cars, with added benefit of being able to be plugged in to home electric outlets for recharging when the car is not in use. 5 The competition in hybrid car industry is very challenging. The automobile industry is an oligopoly. here are only few big key players that are concerned about new entrants, the risk of substitutes emerging through new technology (Hybrid cars), changes in consumer taste and external regulations. Toyota successfully created a barrier for other car manufacturer by introducing hybrid engine green technology. Toyota has dominated the market for years with its hybrid Prius and to remain competitive they will have to design new vehicles at low-cost using the most advanced technology. Every year, the Prius faces more competition as other car manufacturers are building   their own version of hybrid vehicles. Ford recently produced the C-Max hybrid car which outsold the Prius in January 2013. C-Max hybrid car is larger and family-friendly version of the Prius. 6 Ford executive are predicting that its 2013 hybrid sales total will be much higher that their current annual high to $35,496. 6 Nissan is also aggressively pushing hybrid sales in 2013. Hybrid cars are more expensive as compared to traditional gasoline vehicles and require frequent recharging for their operations but in future these issues will hopefully change. References 1. Beresteanu, A. and S. Li. 2010. â€Å"Gasoline Prices, Government Support, and the Demand for Hybrid Vehicles in the U. S. † International Economic Review 52: 161-182 2. Hudson, Mike. Federal Hybrid Tax Credit Programs by Vehicle. Retrieved 19 Oct. 2009 3. Toyota. com 4. Advantages of Hybrid Cars. All Hybrid Cars. 12 Apr. 2012. Web. 12 Apr. 2012. 5. Benefits of Hybrid and Plug-In Electric Vehicles. AFDC. U. S. Department of Energy, Oct. 2011. Web. 23 Mar. 2012. 6. business. time. com/2013/02/05/hybrid-car-competition-heats-up-does-the-toyota-prius-finally-have-a-worthy-challenger/.