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The impact of national environmental policy on the global success of next-generation automobiles

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  • Marian Beise
  • Klaus Rennings

Abstract

In this paper, we identify the most crucial factors of the potential world market success of alternative car designs: fuel cell vehicles (FCVs), hybrid electric vehicles (HEVs), battery electric vehicles (BEVs), and conventional fuel efficient vehicles (FEVs). We assess which vehicle concept is favoured under which regulation regime. We suggest that the global success of a certain technology critically depends on the ability of a regional lead market to leverage and transfer its local success, be it through large cost reductions or the international diffusion of a pioneering environmental regulation, etc. Due to the high cost of FCVs and the lack of strict regulation supporting this radical innovation, incremental innovations, such as new versions of conventional combustion engines and hybrid cars, have the best chances of becoming globally successful.

Suggested Citation

  • Marian Beise & Klaus Rennings, 2004. "The impact of national environmental policy on the global success of next-generation automobiles," International Journal of Energy Technology and Policy, Inderscience Enterprises Ltd, vol. 2(3), pages 272-283.
    • Handle: RePEc:ids:ijetpo:v:2:y:2004:i:3:p:272-283
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    Cited by:

    1. Beise, Marian & Cleff, Thomas, 2004. "Assessing the lead market potential of countries for innovation projects," Journal of International Management, Elsevier, vol. 10(4), pages 453-477.
    2. Tiwari, Rajnish & Herstatt, Cornelius, 2012. "India - a lead market for frugal innovations? Extending the lead market theory to emerging economies," Working Papers 67, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    3. Legler, Harald & Gehrke, Birgit & Krawczyk, Olaf & Schasse, Ulrich & Rammer, Christian & Leheyda, Nina & Sofka, Wolfgang, 2009. "Die Bedeutung der Automobilindustrie für die deutsche Volkswirtschaft im europäischen Kontext: Endbericht an das Bundesministerium für Wirtschaft und Technologie," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 110502.
    4. Beise, Marian & Rennings, Klaus, 2005. "Lead markets and regulation: a framework for analyzing the international diffusion of environmental innovations," Ecological Economics, Elsevier, vol. 52(1), pages 5-17, January.

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