German Market and Policy Options, Research Paper Example

The authors of “Modelling market diffusion of electric vehicles with real world driving data – German market and policy options” discuss that there is a need to consider the modifications that could be made to plug-in electric vehicles (PEVs) in order to increase their overall utility (Gnann et al. 2015). While there is a widespread support for the use of this type of car, these vehicles are currently not as effective as gasoline powered models because there are subject to many restrictions, such as the ability to charge the car in all locations and the speed limit that many PEV models impose.

This study attempts to assess the demand for PEVs in a manner that is related to their capabilities. Many individuals appreciate the idea of an electrically powered car, not only because they’re environmentally friendly, but also because this technology would be useful in reducing transportation expenses. The study has found that Germans are expected to increase their investment in PEV stock by 3% by 2020, which indicates a clear interest in this product. Furthermore, it is expected that fuel prices will increase by 25% at this time, making the PEV product even more desirable.

In order to encourage more Germans to choose this environmentally friendly and cost-effective option, a series of monetary policy options were reviewed to determine which would best allow for the entry of the PEV into the market. It was found that providing interested buyers with a 1000 Euro subsidy would be the most effective method that can be used to achieve this goal.

This subject matter is important because electric cars are now on the market, but many people aren’t buying them. It is therefore necessary for individuals with stake in this market to determine why. Ultimately, it appears that the most important deterrent is the price of these vehicles. Since the PEV is new technology, it is very expensive to acquire, as many major manufacturers still need these funds in order to establish themselves as effective competitors in the car marketplace. Furthermore, many individuals are not certain that they trust this new technology or are concerned that it will be challenging to charge these vehicles. However, economists and business professionals are recognizing and responding to these challenges to ensure that the electric powered car will have a place in this world.

It is important to foster an environment that is accepting of electronic vehicles because this appears to be the most environmentally supportive transportation choice available to many individuals. As the world’s human population continues to grow, there will be a greater need to put cars on the road so that these individuals are able to conduct their daily activities. This serves as a detriment to the environment, as it causes increasing amounts of carbon dioxide to be released from these conventional motors. At this point, it is released into the atmosphere and trapped in the ocean, which could potentially destroy the ozone layer and alter the aquatic environment, creating major changes to the ecosystem. This effect has already occurred as a consequence of human pollution and it is therefore necessary to ensure that this pollution is reduced. The use of electronically powered cars is an important way that we could stop polluting the planet and continue to travel efficiently.

This subject matter is considered important to transportation engineers because there is constantly a need to refine aspects of this car model. First, the car is not designed to last for a very long period of time or to travel efficiently on the highway. As a result, there are many flaws of the PEV design that need to be perfected to encourage people to begin driving this type of car. It is possible that more individuals would choose a PEV as an option if they find that the charge will last longer and that they are able to use it for the same needs as their gasoline powered car. While this will require intensive research, it is in the best interest of transportation engineers to find new solutions to this problem, as this kind of discovery would be considered highly profitable.

Furthermore, transportation engineers should be considered with this technology because it has a strong impact on the field. If PEV cars begin to be accepted as a primary source of transportation, the scope of work that transportation engineers do will change altogether. As a consequence, these individuals will be required to gain an understanding of how PEV engines operate and how they relate to the other machinery in the car. It will be necessary to determine how they can regulate safety measures with regards to the car in addition to determining how to make repairs to these mechanisms should the need arise.

Overall, this existence of this new technology indicates a need for change. It is important for people to learn to adapt to the PEV because this device helps resolve pollution and cost problems related to travel. As the industry attempts to market this product more effectively, it will become necessary for transportation engineers to become accustomed to this technology so that they are able to incorporate this understanding into their daily work.

Bibliography

Gnann, Till; Plötz, Patrick; Kühn, André; Wietschel, Martin. (2015). Modelling market diffusion of electric vehicles with real world driving data – German market and policy options. Transportation Research Part A. 77. p. 95-112.