How Car Society Balances "Negative Externality"

The State Council Standing Conference held on June 14, 2013 deployed ten measures for the prevention and control of atmospheric pollution . Among them, measures related to automobile society include improving fuel quality and eliminating yellow-label vehicles within a time limit; proposing laws such as the Air Pollution Prevention and Control Law; vigorously developing public transportation; increasing the collection of sewage charges; strengthening international cooperation and vigorously cultivating environmental protection and new energy sources. Industry; Including heavy-pollution weather in the emergency management of local government emergencies, and timely adopting measures such as restricted production limits for heavy-polluting enterprises and restrictions on motor vehicles according to pollution levels. The reporter believes that these targeted measures reflect the balance of negative externalities of the car society.

The concept of economics believes that externality is a harmful or beneficial effect of the economic activities of one economic entity on another. As a commodity, automobiles will inevitably have negative externalities such as congestion and emissions pollution during use. However, the effect of perfection is often difficult to achieve. The key to whether an automobile society is “smart” is how to establish an effective system and eliminate and balance negative externalities as much as possible.

For example, a car in a city traffic jam for one minute, and for 1200 people driving, it means an extra twenty hours of driving time. Putting this "small template" into a car society with over 5 million motor vehicles in Beijing, the social cost of car negative externalities is extremely alarming.

As for how to balance the negative externalities of the car, the reporter believes that it is necessary to first understand the causes and the targeted underground drugs. For example, the long-standing domestic oil upgrading lags behind the problem of vehicle emissions upgrading. The core contradiction lies in oil products, which must be targeted to improve the quality of refined oil as soon as possible. Otherwise, even if tomorrow, across the board, light vehicles and heavy commercial vehicles across the country will be upgraded to Europe's emission standard No. 5, which will not improve the air quality.

Similarly, it is more relevant to understand the proportion of fine particulate matter emitted by motor vehicles in smog, as well as the use of passenger cars (mainly petrol private cars) and heavy commercial vehicles (basically diesel). Car) their respective proportions. Han Yingjian, the motor vehicle emissions monitoring center of the Ministry of Environmental Protection, once told reporters that there were a lot of fine particles in the hazy days. At the two conferences last year, the data publicly released by the relevant departments in Beijing considered that the contribution of Beijing's PM2.5 motor vehicles was more than 22%. However, Han Yingjian also emphasized that motor vehicles are also divided into gasoline vehicles and diesel vehicles, and fine particulate matter is mainly produced by diesel vehicles. China's diesel vehicles account for only 17% of the total number, but the annual motor vehicle report issued by the Ministry of Environmental Protection shows that fine particulate emissions are mainly from diesel vehicles. Therefore, the reporter believes that in the future local cities must be scientific, accurate, and targeted for the positioning and grading of extreme weather motor vehicles. Otherwise, private cars that are not the main source of pollution will be allowed to bear the social pollution costs of those heavy diesel vehicles. Once there is a deviation in the design of the system, it will increase the social cost burden of private cars, and it will be difficult to reduce fine particulate emissions in a targeted manner.

In addition, the balance policy on negative externalities of automobiles should also reduce the negative effects that are once again formed during the “governance” process. For example, the reporter noted that more and more cities are restricting the entry of foreign cars into the city in the morning and evening peaks in order to prevent congestion. This has caused an interesting phenomenon. In China, which is deepening the reform of the household registration system, the household registration of automobiles has become more and more important, and it has become increasingly “divided”. Vehicles with large household registrations in big cities like Beijing and Guangzhou can be located in the central area. However, the mobility of automobiles cannot be restricted in large cities where restrictions are imposed on other foreign vehicles during peak hours. The hidden social costs for logistics and people flow are not necessarily lower than the cost of congestion. On the other hand, in the EU’s Schengen countries, even if they drive from Paris, France to Berlin, Germany, there is no limit to the smoothness of the way. This kind of convenience brings greater benefits to the automotive society.

In response to recent media reports and hot discussions, “a number of ministries plan to impose sewage charges on automobiles, and prioritize the inclusion of heavy-duty vehicles that account for 11% of vehicle ownership but 86% of emissions are included in the scope of green tax collection”. Although there is no authoritative department to verify the situation, it actually reflects the idea of ​​using tax and fees to reduce the negative externalities of automobiles. In recent years, it has been repeatedly reported as an rumors by the media. In response, the reporter has always believed that the idea of ​​collecting sewage charges is not feasible. Because the system design or the extra charge collected annually from the displacement does not form a savings effect of “more use and more burden and less use of less burden” in the automobile use link, it may easily lead to the illusion of the owner of the “pollution permit fee”. It is more cost effective to use more for your own "interest." The idea of ​​collecting environmental taxes on heavy-duty vehicles was considered by the reporter to be considered in conjunction with the overall reform of the domestic automobile tax system.

Judging from the spirit of the State Council executive meeting held on the 14th, the adjustment of the new energy automobile industry and its upstream energy structure is good. For a long time, the consumption potential of new energy vehicles in China for private users has not been fully stimulated. This has a certain relationship with the charging environment is not perfect, high battery costs. However, when the negative externalities of automobiles become more and more prominent, the positive externalities such as zero-emissions of new energy vehicles are also becoming more and more “weighty”. Foresighted cities should seize opportunities and strongly encourage private users to purchase new energy vehicles, including pure electric vehicles, extended-range electric vehicles, and plug-in hybrid vehicles. From the point of view of institutional design, the unshaken, unrestricted, and unauctioned emphasis that the four ministries and commissions offices have emphasized will generate huge implicit incentives. The local government departments should design the system well to encourage the purchase of new energy vehicles for the first car in the family, and encourage the existing traditional internal combustion engine private cars to buy new energy vehicles.

The most important point in balancing the negative externalities of automobiles is that local governments should use market hands to regulate them and use less administrative coercive measures to intervene. The reporter believes that this also coincides with the general direction of the current government reform. The local government departments must be aware that consumers pay high taxes and fees for buying private cars. Private cars are goods with clear property rights and use rights. In the balance of rights and pollution and congestion management, the market economy offers the possibility of “a little more market content”. This question should be solved. Of course, the problem-solving process will be complicated, and it will also need to create and accumulate conditions in all aspects, including changes in people's consumption concepts. All these must have a process, but as long as a major direction with certainty is given in advance, and To do it a little, people's behavior will gradually emerge a proactive adjustment process.

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