Corporate Average Fuel Economy
The foreshadowed Market Failures of the mid 1970's gave way to Corporate
Average Fuel Economy, regulation which would call for new standards in automobile fuel efficiency. The market failures hinged on a number of outside variables which could have had a drastic effect on domestic markets.
Resource Scarcity drove the American public to call for a more efficient means of managing its resource use due to a) oil embargos on nondomestic products and b) skyhigh prices at the pump.
Conservation of the world's non-renewable resources cams to the foreground with a) higher pump prices and b) forecasted resource expenditure before the year 2000.
With Corporate Average Fuel Economy in place the market failures should be partially alleviated and pressures due to restricted international resources should subside. The regulated fuel efficiency should allow the market to resume its national flow and regain stability without further manipulation. Reliance on imported fuels would be minimized because of the a) decreased demand for fuel consumption and b) lowered fuel demand allowed for domestic producers to meet the basic needs of the public.
Maximum fuel efficiency would a) cut the amount of fuel consumption thus nullifying high pump prices and b) raise the level of conservati...
If we increase the efficiency remarkably, we may be able to consume fewer fossil fuels and may be able to reduce carbon emissions into the atmosphere therefore saving Mother Earth. This will not happen shortly, but in the future when my great-great-grandchildren are in the working force designing these engines.
In Mr. John Braggs writing, he proposes that the SUV is attacked by the same individuals whom support former Vice President, Al Gore’s call to abolish the production of internal combustion engines. Considering John Bragg is a policy analyst for the Center for the Moral Defense of Capitalism, it is safe to acknowledge that he advocates the production of SUVs not because it is conducive to maintaining the environment but because the SUV is the symbol of Americanism. Additionally, according to “Why Environmentalists Attack the SUV,” the production of SUVs has declined because of federal fuel efficiency mandates, which were emplaced in 1975.
Exxon Mobil is world’s largest publicly traded integrated oil company serving companies in more than 200 countries worldwide. Standard and Poor’s stock report for Exxon Mobil indicates that Exxon’s global functional organization and substantial diversification helps mitigate its exposure to business risk and margin volatility.
Exxon Mobil is a great example of a corporate giant. It all started in 1870, when JD Rockefeller founded U.S. Standard oil a company that will go on to be the most profitable in the world. In 1911 the company split up into 34 different companies, amongst these companies was Vacuum oil company that will later be called Mobil Oil and Jersey Standard which was renamed to Exxon corporation. In 199 the two companies decided to work together again, this was the birth of Exxon Mobil.
In 1908, the U.S. Geological Survey (USGS) predicted that the total future supply of U.S. oil would not exceed 23 billion barrels. In 1914, the U.S. Bureau of Mines predicted that only 5.7 billion barrels of oil remained. In 1920, the USGS proclaimed the peak in U.S. oil production was almost reached. In 1939, the Department of Interior declared that there was only 13 years of oil production remaining. In 1977, President Jimmy Carter claimed, “We are now running out of oil.” Despite these predictions, the U.S. has produced over 200 billion barrels of oil since the early 1900’s. (The Futurist, 1997)
Key regulations: According to the GAO, the two major regulations namely, the Environmental Protection Agency’s (EPA) and Department of Transportation’s (DOT) coordinated fuel economy and the greenhouse gas (GHG) vehicle emission standards, as well as EPA’s Renewable Fuel Standards (RFS) have contributed to declining petroleum-based fuel consumption. For some refiners, adherence to the RFS increased costs in the first half of 2013, although costs have significantly declined to some degree from their peak ( United States Government Accountability Office , 2014).
American demand for petroleum began to grow in the beginning of the twentieth century. The national population was increasing at a rate of five million people per year, global fuel prices were consistent and low, and expansive suburbs were being developed to house the growing urban workforce. These trends greatly encouraged personal vehicle use, and the creation of President Eisenhower’s Interstate Highway System in 1956 enabled these cities and suburbs to be seamlessly connected. Before the highway’s creation, people were limited in how far they could travel, and more than seventy-five percent of the roads in America were in poor condition. Within the first year of the highway’s construction, however, American’s were buying an average of
Consumer spending was low, businesses were struggling and certain corporations where failing to adapt to our changing economy. During this time, the public focused on key world issues, such as global warming and pollution, which guided consumers to become more environmentally responsible and more efficient. Innovation was high and the production of cost efficient products increased to fulfill the demand of consumers. General Motors (GM), once a leader in the automotive industry, failed to adapt to economic change and made a series of poor decisions on a microeconomic
Financial status are very crucial for the community, we prosper with financial success, and we suffer during economic downturns, and that’s where electric cars come into play. Electric cars will help to stimulate the economy substantially when it attacks the market by encouraging more spending to increase the money flow. During 2011, it costed a little more to drive an electric car than a gasoline car, however, with better battery technology now, and easier charging access, the cost for consumers have soon decreased. On average now days, it cost about 7.8 cents to drive one mile on electricity, and 15.9 cents on gasoline. Thus is technically cheaper to fuel the car with electricity than gasoline, and that’s why we should make these resources more readily available to the public. Electric cars sales are also expected to increase to 7% by the
Whether you are traveling, commuting for work, or just own a car in general, you are effected by gas prices. In the past four years gas has fluctuated tremendously, starting at $4.00 per gallon in 2014, and then declining to $1.88 per gallon in 2015. Now the gas price on average is $2.70 per gallon, but the highest gas prices in Oregon can get to be over $3.00 per gallon. How do gas prices effect the environment, your wallet, and people who work for the oil companies? I did some research to answer those exact questions.
An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.
Consumers bought the “clean diesel” engine version of VW because they were trying to do their part in saving the environment. According to Forbes magazine, clean diesel engines are designed to emit 97% less sulfur emissions and still get 30% better fuel economy than gasoline powered engines. (Newman) This led to customers paying more for the diesel engine car, but without the resale incentive of a “green car” and the expected fuel efficiency it is estimated that each car could lose up to $5,000 in resale value. (Newman) When you add up all the cars that were sold under false pretenses that adds up to over $55 billion dollars. (Newman) Even though many consumers worldwide will feel the effect of the VW scandal, some consumers in Europe were lucky. Ford seized and opportunity and offered incentives of up to 2,000 to new-car buyers who are will to turn in their VW or Audi diesel. Ford only offered this incentive across Europe. (Levin)
Finally, many car companies make more efficient cars and hybrid cars. Companies trying to boost their sales through efficient cars and lower gas cost for the consumer. Because of the higher prices of gas consumers are looking for more efficient cars. Gas prices left big companies like Ford, Toyota, and Dodge slow which it had a direct effect in the economy and the workforce. Many people lost their jobs over the passed six months because of the effect of the slow economy.
In Table 3, the KPIs of Telstra in regard to environmental performance are presented. It can be recognized that the efforts of the company to preserve and protect the environment are successful, in terms of reducing its carbon footprint, collection of discarded and used mobile phones and carbon emissions. The target goals were fairly achieved with reduced tons of carbon emission as compared to year 2012 and 2011. Moreover, carbon emission intensity had significantly reduced by 33% as compared to operations in 2011 and 2012. On the other hand, collection of e-waste was slightly lower than the target goal by three points.
Did you know that Natural gas powers more than 150,000 vehicles in the United States and about 15.2 million vehicles worldwide. Natural gas is hailed as cleaner than most other fossil fuels. Natural gas in vehicles emits 22% fewer greenhouse gases than diesel and 29% fewer than conventional gasoline. 40% of new garbage trucks and 25% of new buses in the United States could run on natural gas. Another Good thing, natural gas is cheaper. Natural gas vehicles are better than other types of vehicles because the safety is better, it is efficient, and it’s similar to driving a gasoline-powered car.