This note describes the hybrid electic vehicle market, the results of different automaker strategies, and the environmental regulatory issues that can promote or inhibit market growth in the United States. Introduces students to the technologies and regulatory aspects of vehicles using alternative powertrains and fuels including hybrid electric vehicles, plug-in hybrids, electic vehicles, and deisel engines. Enable students to evaluate the success of the Toyota Prius, especially when used as an updated supplement to a case discussion of Toyota Motor Corp.: Launching Prius (HBS Case 706458).
This note describes the precautionary principle and its key tenets, highlights challenges associated with its use, and includes many examples of its application, primarily within the realm of regulating activities based on the risk of harm to human health and the environment. Appendices provide detailed examples of how the precautionary principle has been applied to regulations in three key industries: agriculture, chemicals, and pharmaceuticals. Describes various forms of the precautionary principle, its widespread adoption in international agreements, its distinction from cost-benefit analysis, its shift of the burden of proving that activities are safe from regulators to industry, and the importance of considering Type I and Type II errors and status quo bias when contemplating whether to evoke the precautionary principle.
Global climate change is an increasingly prominent political and business problem. Design of market-based systems to reduce carbon emissions has proven difficult. More broadly, national attempts to comply with the provisions of the Kyoto Protocol present both governments and firms with significant challenges. The design of international institutions that will be useful for managing change after the Kyoto period is a challenge both for Kyoto ratifiers and for countries like the United States that have not ratified the agreement. Creation of a post-Kyoto treaty on climate change requires agreement by China and the United States, the world's largest carbon emitters. The case summarizes the science and economics of climate change and encourages readers to contemplate the strategic and risk management problems that it presents to government officials and to business leaders in developed countries and in the developing world.
Presents data on opportunities to conserve energy in buildings, which account for about a third of all energy use. Encourages readers to think about the impediments to energy efficiency in the buildings sector and the ways in which entrepreneurs can profitably surmount the obstacles.