Finding a Way Out

Regardless of the struggles of today’snew-energy vehicles, few can deny that they represent the future of driving. Along with increasing energy shortages and environmental problems, nations throughout the world are speeding up development of newenergy vehicles. In addition to finding new technology and improving infrastructure, the rise of new-energy vehicles needs encouragement and support from the world’s governments.

In fact, governments in two of the world’s biggest auto-producing countries, Japan and the United States, are already setting the tone by creating policies that stimulate the clean energy vehicle industry. The U.S. Federal government established a $25 billion fund to provide low-interest loans to automakers involved in developing alternative and new energy technology, and consumers who purchase a plug-in hybrid are eligible for a tax rebate of up to $7,500. On April 1, 2009, Japan introduced a “green tax” on fossil fuels, while offering rebates to users of electric vehicles, hybrids, and clean diesel vehicles. As long ago as 1995, France had already formulated policies to encourage electric vehicles and reward buyers.

Similarly, China has begun bolstering the development of its new-energy vehicles. In January 2009, the Chinese government designated 13 cities as part of a pilot program to introduce new-energy vehicles in uses such as public transport, taxis, urban sanitation, and mail delivery. As the host city of the 2010 World Expo, Shanghai is also China’s frontrunner in the promotion of new-energy cars. So far, Shanghai already has 10 hydrogen fueling stations, 100 fuel cell buses, and 1,000 fuel cell sedans. The city plans to offer a 20,000-yuan allowance to newenergy vehicle buyers and exempt them from paying road tolls. Industry insiders expect China’s allowance policy to take effect as early as July of this year.

According to the State Council’s 2009-2011 Auto Industry Adjustment and Rejuvenation Plan, new-energy vehicles should account for five percent of the nation’s total auto sales by 2011. Whether or not this goal can be reached, one thing is certain: the end of the petroleum period is drawing nearer with each passing day. The world is slowly changing color from sticky black to green.