Recently, at the Shanghai auto show new electric cars from major companies such as Volkswagen and Toyota were unveiled. The push for hybrid and electric cars comes as the government campaigns for “new-energy” vehicles. This comes at an important time because as China’s population continues to grow, so to does its automotive population. China has already witnessed environmental degradation the past few decades due to the quick economic growth it has experienced and it will continue to worsen unless rules and regulations are corrected to reverse the degradation of the past. This may come at the expense of lessened economic growth, but in order for China to be a sustainable nation they must focus on bettering the environment.
Incentives to purchase these vehicles have been put into place, but help very little with driving down the price. Other policies and rules must also be changed regarding fuel efficiency, these incentives and rules will also help lessen China’s dependence on oil assuming the people push for the more efficient vehicles. The Shanghai auto show is a good example of others trying to make the problems known and convincing the government to implement changes. WSJ article