hmhttp://www.examiner.com/x-14333-Green-Transportation-Examiner~y2009m9d4-Oil-scarcity-leads-us-to-electric-cars-which-leads-us-to-Neodymium-scarcity
This article talks about how the shortage of oil leads to the development of electric cars. When there is a low supply of a limited resource, it becomes harder to extract and production would fall. The low supply of oil causes a problem for gas fueled cars and electric powered cars would be a solution for this. Electric cars use rare earth metals to make the electric motor. Neodymium, terbium and dysprosium are key components of an alloy used to make the high-power, lightweight magnets for lightweight powerful electric motors. All non-renewable resources such as oil and even neodymium are limited in supply.
This article presents a perfect example of scarcity. Scarcity is the reason why there is value to goods because there is a limited supply. The shortage of oil, due to the fall of production, means it is increasing scarcity which leads to an increase in price. As a result, consumers will have to sacrifice more in order to purchase oil which means their opportunity cost would increase. In which case, consumers would look for a cheaper alternative such as electric powered cars. Since consumers are the major determinant of resource use and as long as the consumers are willing to pay for the electric cars, the suppliers would increase the production of electric cars to meet the demands of the consumers.
In my opinion, electric cars are only a solution if the prices of oil, which is determined by its scarcity, increase to a point where consumers are unwilling to pay. In other words, the success of electric cars is determined by the price of the oil. However, due to the fact that the resources used to produce the electric car are also scarce, this is only a temporary solution. Another solution is that technology may improve consumption efficiency of the scarce resources so that the supply will not be depleted as quickly.
Michael, I agree that electric cars are only a solution if the prices of oil increase to a point where consumers are unwilling to pay. The idea of electric cars might sound good on paper, but there can also be other flaws. As you mentioned, the materials in creating an electric car may also be scarce. We also have to take into count the price of the electric car as well as the price to replace electric motor. Since oil is so valuable and people from all over the world want more and more, the cost of it will only increase.
ReplyDeleteReally? Are electric cars the only solution? As an alternative of gasoline vehicles, electric cars do a good job in minimizing environmental issues, creating a solution for oil scarcity, and minimizing pollution that gasoline vehicles cause. But as appealing as it is, there is an enormous downside to electric cars. Electric cars have a very short range, and I’m talking about the distance it can go depending on their battery type. The battery that moves the car takes the inconvenience of plugging it into an outlet and charging it daily, but what if people that don’t have the access to an outlet because they don’t park in a garage? The average battery life may also cause the inconvenience of having a road trip, or simply going to work from Vancouver to Surrey and figuring out you left your wallet at home so you have to drive all the way back but the battery won’t last long enough for when you’re home and going back to work. Furthermore, have you thought about when the battery dies and the cost of replacing the battery? According to Autotropolis, “Some lithium-ion batteries currently used in electric vehicles would cost up to $10,000 dollars to replace”. Even if batteries are replaced, looking at it at a bigger picture, there will be concerns for safe disposals of mass amounts of batteries which could cause an environmental nightmare, so are electric cars the only solution to oil scarcity?
ReplyDeleteThe logic behind constructing electric powered cars is clear; however, the cost of purchasing an electric powered car or even a hybrid is more than what the average family could afford. Although it is important that we keep the environment clean and reduce harmful gas emissions, but we have to take the oil companies into consideration. With the economy at the state it is, it is crucial that massive companies like oil suppliers stay operational. In addition, the cost of fueling up an automobile would almost be at par to the price it cost to charge up an electric powered vehicle. Yes it is important that we keep our planet healthy and unpolluted but by bringing in new technology like this it may stir up more economic problems in the future.
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