The other government around the world is also concerned about the carbon dioxide emission in their country (Wells, 2010, p. 132). The biggest impact of such policies and concern will have on the transportation system which is considered the biggest emitter of carbon dioxide. This will lead to a rise in the demand for cars which are more environments friendly. The main cars available in this segment are the electric cars and the cars running on bio-fuel. The UK government proposes a subsidy of up to 5000 pounds for electric cars in 2011. Germany plans to invest 500 million Euro in 2009 to develop the infrastructure for electric cars. In this context a very important debate is that whether the petrol cars will be replaced by the electric cars. However Schroder (2009, pp. 7 -10) gives a summary of the problems faced by the electric cars. According to him the technology of the electric cars are yet to match the cost efficiency, speed and the comfort of the petrol cars. According to him there are two alternatives for the consumer. They can either purchase a comfortable but highly expensive electric car or a less mobile and less comfortable but cheaper electric car. Therefore petrol cars still provide some advantage over the electric cars.
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