...and delivers a dynamic research platform to scholars worldwide. Title: Lifecycle emission impacts of subsidies for energy efficiency: Evidence from CashforClunkers Author: Rajagopal, Deepak, University of California - Los Angeles Publication Date: 03-22-2011 Series: Recent Work Publication Info: Recent Work, Institute of the Environment and Sustainability, UC Los Angeles Permalink: http://escholarship.org/uc/item/7mq9j9bz Keywords: transportation, fuel, biofuel, energy efficiency, subsidy, pollution, lifecycle assessment Abstract: One popular policy option to address environmental and economic concerns arising from current patterns of energy use is to subsidize increase in energy efficiency or renewable energy. In this paper we evaluate the lifecycle environmental benets of the Car Allowance Rebate System (CARS) (or commonly `Cash-for-clunkers') which provided a subsidy for voluntary early retirement and replacement of low fuel economy automobiles with new, higher fuel economy vehicles. We nd that the estimates of benets hinge crucially on the assumption about what type of vehicle would have been purchased in the counterfactual scenario. Estimates are signicantly less sensitive to assumptions about the remaining useful life of vehicles traded-in and the rebound eect. Our prediction is that CARS program lead to a reduction of 9.1 to 17.8 million metric tonnes in greenhouse gas (GHG) emissions and 850 to 1600 million gallon reduction in gasoline use...
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...Table of Contents Matthew Toenjes Professor Rowland BE 401‐004 Inside the Meltdown Review Page 1‐3 Excel Graph and Data Page 1‐7 Analysis of Data % Change Graph Page 8‐13 Attached Articles * I, Matthew Toenjes, certify that I have completed this project on my own. Matthew Toenjes 2/17/2015 BE 401-004 Inside the Meltdown Review The 2008 Economic Recession was devastating to many. Corporate greed and overconfidence in the housing market were the main culprits to the economic downturn. As the US economy crashed, Wall Street and investors began to panic. This widespread panic was for good reason as huge multinational firms began to fail. One after another, these firms were about to go bankrupt. As the panic spread, stock prices began to plummet. As the US government tried to turn the economy around, it plunged further and further down. The effects of the recession not only hurt the US economy, but sent “shockwaves” throughout the world. I did not realize how close our economy was to collapsing. Ben Bernanke said, “If we don't do this tomorrow, we won't have an economy on Monday." When I heard this, it sent chills down my spine. How did we get so close to our economy collapsing? Toxic assets are one of the main reasons for our economy failing. These were loans given out to un-creditworthy individuals and unlikely to be repaid. To add to the problem, banks were issuing many of these high risk loans and the market became flooded with...
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...GE217 Composition II Week 2 (B) Identifying logical Fallacies 1. Bandwagon Appeal: “Cash for Clunkers”; The New York Times, September 30, 2012 The argument on this article is about how the people think that something should to be done because the majority does it. The "Cash for Clunkers" program has been a success. By subsidizing the purchases of new, more fuel efficient vehicles for Americans willing to trade in their old gas guzzlers, this initiative makes a short-term investment in our long-term goals of environmental protection and decreasing our dependence on fossil fuels. 2. Ad Hominem: The education for women; Richard Norquist; This is an article from the year 1917 were women are not suppose to know everything like men, he’s argument and appeal that women should have the right to go be equal to men in terms of education. 3. Begging the question: “Murder is morally wrong, Therefore, abortion is morally wrong”;Hurley P. ; About.com The argument presumes the truth of a premise that isn’t stated, namely that abortion is murder. As this premise is far from obvious, and the arguer doesn’t even mention it (much less give it a defense), the argument begs the question. 4. Red Herring: Consequences of using Nuclear Power; Dean Babst and David Krieger; 1997 Here the arguer does nothing to address the issue of the dangers of nuclear power, but instead changes the subject to the danger of electricity. If there’s even an argument at all here, it certainly has nothing to...
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..."Built for the road ahead." Company’s background Ford Motor Company was founded in 1903 by Henry Ford in Detroit, USA with 12 investors owning a total of 1000 shares. Henry Ford was 40 years old when he founded the Ford Motor Company, which would go on to become one of the largest and most profitable companies in the world, as well as being one of the few to survive the Great Depression. The first retail Ford dealership was opened in St. Cloud, Michigan by Stephen Tenvoorde in 1903. The world headquarters of the Ford Motor Company are located in Detroit, Michigan, which is also commonly known as the automobile capital of the world. Not only did Ford revolutionize the development of the automobile as a product, he is also the visionary behind the idea of mass production. Ford's ability to make automobiles affordable for the masses is cited as a driving force behind both the automobile industry and the creation of a middle class in America. The largest family-controlled company in the world, the Ford Motor Company has been in continuous family control for over 100 years. As a top company in the automotive industry, Ford Motor specialize in Mainstream/Performance vehicles and Automotive parts providing services including Automotive finance, Vehicle leasing and Vehicle service. It manufactures and distributes automobiles in 200 markets across six continents. The company’s automotive vehicle brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and...
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...Air pollution is still a growing issue in Los Angeles. However, with new regulation, air pollution is becoming less of a problem. However, Los Angeles still ranks as one of the top polluters in California (Barbosa, 2014). California as a whole has implemented regulations that will lessen the effects of the major air polluters; however, there is more work to be done. What is air pollution? “Air pollution is the introduction into the atmosphere of chemicals, particulates, and biological matter that cause harm to humans, other living organisms, or cause damage to the natural environment” (Coffey, 2010). Air pollution affects all living things. Plants, animals, and humans are all affected by air pollution. Air pollution is a threat to human health as well as the earth’s eco system. The earth is somewhat able to clean itself, however, the because of the number of pollutants, the earth struggles to clean itself. The result of the earth not being able to clean itself results in acid rain, smog, and the numerous of other safety and health problems. Air pollution may also be a cause for climate change and global warming. The cause of air pollution “Carbon dioxide, a greenhouse gas, is the main pollutant that is warming Earth. Though living things emit carbon dioxide when they breathe, carbon dioxide is widely considered to be a pollutant when associated with cars, planes, power plants, and other human activities that involve the burning of fossil fuels such as gasoline...
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...orders because of a Government stimulant program. The most recent regenerated the industry for the short time, namely The Car Allowance Rebate System (CARS) program in 2009. This essay will examine the economic affects of a stimulus program, The Car Allowance Rebate System (CARS), commonly referred to as "Cash for Clunkers". I will evaluate the cost and benefit from the perspective of the manufacturer, consumers and taxpayer. Some of the questions I will answer are: • Who benefited from the subsidy? • What was the desired benefit of the subsidy? • What was the effect of the subsidy? • Was there any detrimental effect to the stimulus? • Who paid for the subsidy and was it a wise decision? Finally I will offer my own personal opinion of the stimulus from the perspective of someone who has worked in the industry before, during and after the stimulus program. In the summer of 2009 the US Government introduced The Car Allowance Rebate System (CARS), popularly referred to as “Cash for Clunkers”. The program was a $3 billion U.S. federal program intended to provide economic incentives to U.S. residents who purchased a new, more fuel-efficient vehicle when trading in a less fuel-efficient vehicle that met certain inefficiency criteria. The program was promoted as providing stimulus to the automotive industry by boosting auto sales, while putting safer, cleaner and more fuel-efficient vehicles on the roadways. When the CARS program was introduced it offered buyers a credit...
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...Mini- Case: Going- Concern Reporting. Refer to the mini-case “GM: Running on Empty” on page C11 and respond to questions 1– 6. 1. Reviewing GM’s financial information in GM Exhibit 1 and its stock price in GM Exhibit 2 , when do you first see signs of GM’s impending financial distress? 2. In referencing professional standards, what factors should auditors consider in evaluating potential going- concern uncertainties? 3. Considering your response to questions 1 and 2, do you believe that the going- concern uncertainty was warranted? Do you believe that Deloitte & Touche should have issued a going- concern opinion prior to 2008? 4. What economic factors existing in the United States during 2008 might have accelerated Deloitte & Touche’s decision to issue an audit opinion modified to disclose going- concern uncertainties? 5. Do you believe that the events immediately following GM’s bankruptcy alleviated the concerns that led to the issuance of the going- concern uncertainty? What issues would auditors need to consider in evaluating the ability of General Motors Co. (the new GM) to continue as a going concern? 6. Many companies believe that a going- concern opinion is a self- fulfilling prophecy ( that is, when a company receives a going- concern opinion, customers will not purchase products with warranties, suppliers will not provide short- term credit, and investors and creditors will not invest or loan). Would GM’s going- concern opinion influence your decisions regarding either...
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...Current Macroeconomic Situation in US and Prospects for Automotive Sector The U.S. automobile industry is large and dynamic sector contributing significantly to the nation’s output and employment. Auto industry provides the basis for a mass of related service and support industries. The industry is highly volatile and sensitive to global and domestic economic changes. During the 1960’s & 1970’s the big three accounted for 90% of automobiles purchased in U.S. However, since 1980’s foreign manufacturers entered the U.S market. So, the industry faced intensive competition from Japan, Germany & other countries. During 1998’s availability of foreign substitutes flooded the U.S automotive industry. Foreign producers, particularly Japanese, provided solitary competition to The U.S. oligopoly. Besides, the demand for automotives are highly found to be fickle and sensitive to macroeconomic conditions like, income, unemployment, interest rate etc. Regarding cost of production, The U.S automotive firms are characterized by huge fixed and variable costs. The variable cost in terms of wages and other benefits are, because most of the automobile firms like GM, Ford, and Chrysler have long been unionized. The United Auto Workers (UAW) ensures higher wages and generous benefits in the form of health insurance and Medicare for automotive industry workers than in any other non unionized firm. Eventually, UAW contracts with the auto firms lead to mounting variable and fixed cost...
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...States has ever seen. The president tried a few tactics and they never really worked, trying to boost consumer spending to create more jobs and boost the economy. By 1932, the budget was so far out of balance that a revenue bill cut government expenditures and imposed a huge tax increase on the ailing economy. President Hoover authorized the creation of the Reconstruction Finance Corporation, to pump $2 billion in investment money into the economy. This was a major involvement in the economy by the government, but it did not work. When Roosevelt took office in 1933, he took over as a leader of a nation with a quarter of its workforce unemployed. In the first four years, the Roosevelt Administration launched the NRA, the CCC, the WPA, programs to relieve unemployment. Newly employed workers spent more money, creating more jobs. The economy seemed to be rebounding until the stock market took a dive in 1937. Unemployment began to rise again. Roosevelt responded by resuming government spending with a $3 & 3 /4 billion dollar measure. Not until the Second World War did the US economy rise, when government took a huge part in the economy. They were opening factories to build war machines and weapons, creating countless jobs where many people worked multiple shifts and earned overtime. This in turn boosted spending which opened more shops and helped production rise. The economy was finally back on its feet, and the government promised to never let the US get in that bad of...
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...THE POLISH SURPRISE As the financial crisis of 2008 and 2009 unfolded, countries across Europe were hit hard. A notable exception was Poland, whose economy grew by 1.5 percent during 2009, while every other economy in the European Union contracted. In 2010 and 2011, Poland achieved a growth rate of 3.9 and 3.8 percent, respectively, which were among the best in the EU. How did Poland achieve this? In 1989, Poland elected its first democratic government after more than four decades of Communist rule. Since then, like many other eastern European countries, Poland has embraced market-based economic policies, opened its markets to international trade and foreign investment, and privatized many state-owned businesses. In 2004, the country joined the European Union, giving it easy access to the large consumer markets of western Europe. All this helped transform Poland into a major exporter. Exports account for about 40 percent of gross domestic product (in contrast, they account for around 12 percent in the United States). As a consequence, between 1989 and 2010, Poland recorded the highest sustained growth in the region. Real GDP doubled over this period, compared to a 70 percent increase in neighbouring Slovakia and 45 percent in the Czech Republic. Poland's government has also been fiscally conservative, keeping public debt in check, not allowing it to expand during the recession as many other countries did. This led to investor confidence in the country. Consequently, there was...
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...Downsizing of the US Auto Market. Automakers will begin reducing production, cutting sales, or preparing for price wars in order to get rid of inventory. This type of downsizing may hurt Big Auto, forcing layoffs and reducing services offered. The consumers will no longer be able to afford expensive cars and would prefer keeping the current car they purchased. Even if the car is not worth the balance owed. Big Drive Auto will no longer carry certain makes or models, which would hurt sales. (Carseek, 2007) On the other hand, if downsizing affects the sale of cars, Big Drive Auto can look at generating revenue in the other two areas listed. Generating revenue in the other two areas may not show a major increase in sales, but should give a positive growth within the next five years. Downsizing falls in the recession area of the business cycle. The recession phase is a “period of decline in total output, income, and employment.” (McConnell, Brue, & Flynn, 2009). Americans No Longer Driving The culture of owning a new vehicle is dropping. Consumers are no longer driving, which decrease sales at car dealerships. Higher gas prices and rising unemployment plays a role in consumers purchasing cars. Evidence of this change can be found in the model below, created by Nate Silver, which reveals a snapshot of a decline in American Driving. This information created from information listed in the Federal Highway Administration, writes Nate Silver. (Esquire, 2009) Mergers...
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...as the Great Recession. The overall impact was described as being the worst global recession since World War II. The precise magnitude and timing of the recession is widely debated and varied from country to country. The years leading up to the crisis were characterized by a highly excessive rise in asset prices, combined with a boom in economic demand, which inflicted a clear hardship for businesses and families. To further explain my research, this paper will focus on the following: What caused the great recession, Effects of the recent recession, Types of Businesses that survived the recession, Companies that hired during the recession, Companies that choose shared-worked programs over layoffs, Various states that participates in the work shared programs, and the Advantages of the work share program. WHAT CAUSED THE GREAT RECESSION The Great Recession actually began in December 2007, which is long before most people ever realized what was to soon transpire. Although there are many speculated factors or causes that led to the recession, the American people strongly believe that the following groups are responsible for the Great Recession of 2008: Government, Mortgage Companies, Banking Institutions, Rating Companies, and AIG. The Government and the Great Recession. Politicians and the banks wanted deregulation in the banking and investment industries. During The Great Depression of the 1930s, regulation called the Glass-Steagall Act went into effect that separated...
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...The Role of Policy in the Great Recession and the Weak Recovery John B. Taylor* February 2014 It’s been nearly five years since the recession of 2007-2009 ended. By all accounts, this very severe recession was followed by an extremely disappointing recovery. Economic growth during the recovery has been far too slow to raise the employment-to-population ratio from the low levels to which it fell during the recession, or to close materially the gap between real GDP and potential GDP, in marked contrast to the rapid recovery from the previous severe recession in the early 1980s or from earlier severe recessions in U.S. history. When you include both the periods of the recession and the slow recovery, economic instability has more than tripled according to a common measure of performance used by macroeconomists: The standard deviation of the percentage gap between real GDP and potential GDP rose from 1½ percent during 1984-2006 to 5½ percent during 2007-2012 (Taylor, 2013). In this paper I consider the role of economic policy in this poor economic performance. I. The Shift in Policy In evaluating the role of policy it is important to consider actions taken before, during, and after the financial panic in the fall of 2008. A careful look at the full decade from 5 years before to 5 years after the panic reveals that there was a significant shift in policy away from what worked reasonably well in the decades before. Broadly speaking, monetary policy, regulatory policy, and fiscal policy...
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...external influences that can positively or adversely affect the outcomes of BMW Motor Corporation. Some factors include but are not limited to the state of the current economy, the current and future supply of fuel resources, the supply and demand of automotive parts- and the most demanding of all- the needs and wants of the consumer. If we recall, the United States was hit by a recession that affected many industries including the automotive industry. In fact, the automotive industry appeared to be one of the hardest hit areas during times of recession. In response, The United States implemented a program called the car allowance rebate system otherwise known as ‘cash for clunkers’. The primary purpose of the program was to help stimulate the automotive industry by offering incentives to trade in old vehicles that had a fuel economy of less than 18 miles per gallon. The program did help stimulate automobile sales nationwide, and in this time period BMW Motor Corporation saw a slight increase in its own pre-owned luxury...
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...The Automotive Industry Recovery Prepared for: Transmittal Letter TO: FROM: DATE: SUBJECT: Report Overview The following report discusses the automotive industry recover from the “Great Recession” that occurred in 2008/2009. Information presented will be the state of the automotive industry before the recession, after the recession, how the industry is doing now and how the future looks for automakers. Contents The Automotive Industry Recovery 1 Transmittal Letter ii Contents iii Figures iii Executive Summary iv Introduction 1 Finding 1 Pre-Recession 1 Post Recession 2 How is it now? 3 The Future Outlook 3 Analysis 3 Summary 3 Conclusions 4 Reference 5 Figures Figure 1, Annual Auto Sales in the U.S. 2 Executive Summary The Automotive Industry was hit hard by the “Great Recession”. Jobs and sales declined rapidly as the economy and Americans were coming up short financially. After a couple years and some restructuring the automotive industry started making a comeback. Increasing sales by focusing on consumer needs helped bring workers back to work. Now the industry is booming again with continued growth in the future. The Automotive Industry Recovery INTRODUCTION PURPOSE The nationwide effect from the Great Recession on the auto industry was apparent everywhere. With the bail-outs of some of the big auto makers and loss of jobs, the economy really went into a slump...
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