| Dear Sustainability Watch Reader,
I am pleased to provide you with your weekly Sustainability Watch newsletter. This week's topic is "Hybrid Vehicles."
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Hybrid Vehicles
The average U.S. solider consumes 22 gallons of gasoline and diesel per day, the lion's share of which is directed at transportation. It is therefore no surprise that the U.S. military is looking to cleaner energy modes of transportation as the next logical step. Currently in development is the hybrid Ground Combat Vehicle, whose powertrain is 10%-20% more fuel efficient than the current crop of armored vehicle engines. Like a conventional hybrid, the hybrid GCV relies on both a battery pack and diesel engines for propulsion.
Hybrid vehicles have been gaining traction in the US for years, driven by impressive fuel efficiency and lower GHG emissions. More than 2 million hybrid vehicles have been sold in the US since 1999, and one recent forecast pegged annual sales of hybrids worldwide at 8.3 million by 2020. Newer technologies such as plug-in hybrids and electric vehicles are generating additional buzz, as they give consumers a vision of a future without any gasoline usage at all.
Nonetheless, GM has recently announced that it will suspend production on its Chevy Volt plug-in to allow demand to catch up with supply. While sales of the Volt are on the rise, the numbers have not kept pace with GM's ambitious sales forecasts. Sluggish sales for hybrids in general indicate that these technologies still have a long way to go, given their higher cost, increased competition from fuel-efficient conventional vehicles, and general confusion about their capabilities and operations. |
 Executive Summary
A hybrid electric car (HEV) uses both a battery-powered electric motor and a gas-powered internal combustion engine to turn its transmission. The hybrid engine is smaller and lighter than in traditional gas-powered vehicles, resulting in reduced tailpipe emissions and improved gas mileage. A hybrid is able to recharge itself through regenerative braking, eliminating the need for electric charging.
There are a variety of hybrids on the market today, ranging from full hybrids, which are able to operate in full-electric mode at speeds up to 20 mph, to light hybrids, which increase fuel economy by only about 10%. Like a traditional hybrid, a plug-in hybrid (PHEV) uses both a gasoline engine and an electric motor, but its larger battery packs can be recharged by connecting to electricity. This allows drivers to travel in an all-electric mode for most short distances. Plug-in hybrids are generating a lot of press, but they are unlikely to be available in significant quantities any time soon; as of 2012, only the Chevrolet Volt, Fisker Karma, and Toyota Prius plug-ins are available.
The benefits tied to hybrids are both financial and environmental. The extent of the financial benefit is closely tied to the price of gasoline; other incentives include lower depreciation, maintenance costs, and tax credits (available from certain carmakers). The cost-savings associated with hybrids may not offset the increased cost of ownership, particularly for highway drivers. In terms of environmental benefits, hybrids have reduced tailpipe emissions (carbon dioxide, carbon monoxide, nitrogen oxide, particulate matter and hydrocarbons) compared to traditional combustion engine vehicles. Nonetheless, critics have pointed to issues such as battery replacement and disposal, the increased premium costs, and the pollution associated with the production of hybrids.
Motivated by the environmental and potential cost-savings benefits of hybrids, some for-profit businesses and state and federal organizations have begun replacing their fleets with hybrids. City taxis and buses have been undergoing the transition to hybrid fleets for years: San Francisco's hybrid taxi fleet is now considered the greenest in the world, and both New York City and Boston have attempted policies to encourage a full transition. Companies like Coca-Cola, PepsiCo, FedEx and UPS are replacing both cars and trucks with hybrid and alternative-fuel vehicles.
Encouraging cleaner energy vehicles has been an element of the Obama administration's energy policy since 2009. The Department of Energy oversees the Advanced Technology Vehicles Manufacturing program, which grants partial or full guarantees for direct loans to support the development of advanced vehicle technologies and associated components. To date, $8.399 billion in loans has been directed to five companies. In addition, the National Highway Traffic Safety Administration and the Environmental Protection Agency (EPA) have coordinated an aggressive National Program aimed at reducing GHG emissions and improving fuel efficiency in the transportation sector. New standards have been announced for MY 2012-2016 and MY 2017-2025 passenger vehicles, as well as MY 2014-2018 heavy-duty cars and trucks. |
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