Are Electric Cars Good for the Automotive Economy in the US Research Paper

Are Electric Cars Good for the Automotive Economy in the US - Research Paper Example These results are also backed by empirical evidence. Introduction With ever increasing growth of industrialization the need for transportation is also increasing rapidly. Automobile industry to match the escalating needs not only provided a wide variety of cars but came up with a broad range of innovative cars to pique the interest of the infatuated public. This resulted in concept cars such as hybrid cars and electric cars (Cleveland). Today’s market can be termed as in its early development stage of evolving technologies, designs and innovations to match the changing ever changing lifestyle of the twenty first century. Petroleum prices and economy of fuel has played an important role in the development of this technology. Recent volatility in petroleum prices has urged countries to look for self sufficiency in fuel. This need led to the emphasis on alternative fuel technology. In USA especially after the terrorist attack of 2011need for self sufficiency in fuel has aroused. This trend is depicted in the popularity of many SUV cars and other hybrid cars being manufactured by all major automobile manufacturers. This paper aims at studying the effects of electric cars on the US automotive industry. What impact it will have on the business of gas engine manufacturers, gas engine parts stores and the job of people who work on gas engines Review of related literature An electric car is not a new phenomenon. In fact the history of electric car dates back to 1890. The history of electric car can be divided into three phases. Firs the era 1890-1929 which can also be called the early years, second phase is 1895-1905 also called the golden era of dominance or the middle age and the third phase is the current years from 1990-to present. Current escalating fuel prices and growing concerns of environment has only sparked interest in the alternative fuels in recent times. The result is that today’s options of automobile include hybrid SUVs (Curtis Darrel Ander son). This recent resurgence and popularity of electric hybrid cars can be attributed to multitude of reasons. It includes environmental concerns such as harmful toxins released from internal combustion engine (ICE) of traditional cars, global warming, air pollution as well as more economical reasons such as depleting oil reserves and escalating petroleum prices. Gasoline composes 20% of the crude oil produced. Production of gasoline from crude oil requires two times of oil than any other fuel (Georgano). Gasoline is used in ICE of the cars used today. Hence it led to the need of finding more efficient use of the existing resources of the planet. A critical analysis of this electric hybrid car technology is required and the benefits of fuel efficiency should be weighed against its impact on the overall economy. These hybrid cars more expensive for the customers and the price difference called premium price is added to the cost to customers. In addition to that maintenance and replac ement cost of batteries of hybrid cars is another issue. Hybrid car is not free of its faults including some engineering faults and safety concerns as well as the pollution caused through manufacturing of these batteries (Friedman). It is estimated that this trend for electric cars will grow in the future. It is believed that in addition to