People buy environmental goods to improve their social status new research suggests.

Anything from greener cars, to domestic products and fair trade food are bought as a status symbol, the new study, co-authored by Dr. Bram Van den Bergh, Assistant-Professor at Rotterdam School of Management concludes.

According to the research published in the Journal of Personality and Social Psychology, people are willing to buy products such as hybrid cars even though it might mean sacrificing performance in favour of environmental status.

Additionally, as many environmentally-friendly products are more costly than traditional counterparts, such products allow buyers to display their wealth while communicating altruism.

The researchers studied the way in which consumers selected products. According to the Guardian, in one experiment, 168 students were split into two groups. One group were told a story about social status while a second group read a story without a status message. Asked to make a hypothetical purchasing decision between a green car or a non-green model of the same price but more luxurious and better-performing, 37.2 per cent in the control group chose the green car. That figure rose to 54.5 per cent for those who read the story designed to ‘activate status motives.’

The authors claim that this experiment demonstrates that playing on desire for social status is a way to encourage people to make green choices.

The results suggest that when people shop online, they tend to favour high quality products that make them feel comfortable, but when shopping in public, they are willing to spend more on lower quality green products if those purchases make them appear to be caring and altruistic to others.

Dr. Van den Bergh says one of the best examples of this is the Toyota Prius, which essentially functions as a mobile, self-promoting billboard for pro-environmentalism.

“Driving a luxurious non-green car, like a Hummer, communicates one’s wealth, but also suggests that the buyer is a selfish and uncaring individual who is concerned primarily about his own comfort rather than the welfare of society. Driving a hybrid, like a Prius, does not only displays one’s wealth as it costs many thousands of Euros more than a conventional but highly fuel-efficient car, but also signals the owner cares about others and the environment,” said Van den Bergh.

The study also shows that status motives increased desirability of green products, especially when such products cost more—but not less—relative to non-green products, as is the case of the Prius.

The study entitled ‘Going Green to Be Seen: Status, Reputation, and Conspicuous Conservation’, was co-authored with Vladas Griskevicius from the University of Minnesota and Joshua M. Tybur from the University of New Mexico.

The Green Piece Column. Tuesday 30 March 2010.

Cap and trade has been a burning issue in the US ever since the Obama administration won office and in the European Union the Emission Trading Scheme is well established. However, just how much do we really know about offsets, which are at the heart of cap and trade, and what are their pros and cons?

How do offsets work and what are the issues?

Broadly speaking, an offset is a reduction or avoidance of greenhouse gas emissions from a source not covered by an emission reduction programme. In the case of cap and trade, entities can purchase emission credits from carbon offset projects which help them meet their compliance obligations.

However, there is widespread debate as to whether they achieve real emission reductions. If an offset is to work then a ton of CO2 emissions should equate to a ton reduced from an emission source but these are often difficult to measure.

What types of offset programmes are there?

There are several different types of offset programmes, including:

• Biological sequestration projects: These include planting trees, limiting deforestation, setting aside cropland to rebuild carbon in the soil and reducing soil disruption.
• Renewable energy projects: Such as financial support for wind, biomass and solar energy.
• Energy efficiency projects: This could be upgrading machines and appliances; supporting the construction of energy efficient buildings; and so on.
• Non-CO2 emission reduction projects: For example reducing nitrous oxide emissions from agricultural applications and so on.

What are the benefits?

There are many potential benefits to offset schemes. For example, they provide an incentive for non-regulated sources to reduce, avoid or sequester emissions. The environmental benefits are obvious – for example, offset projects that promote carbon sequestration in the soil can help prevent erosion; while planting trees has even more obvious benefits in restoring a natural balance.

There are significant economic opportunities too. Developing countries in particular would gain from an international greenhouse gas emission programme. Renewable energy and energy efficiency projects could thrive in these countries by avoiding the combustion of fossil fuels; while in developing countries offset schemes can create jobs and promote sustainable development.

What about the downside?

There is plenty of opposition to offset schemes, with the primary concern being their integrity. Whether the offsets represent real emission reductions and how these reductions are measured is open for debate. For example, would the emission reduction have happened anyway or do the schemes legitimately represent an activity that is beyond what would have normally occurred? There also concerns about double-counting – ideally when an offset is sold, it should be retired and not sold again, meaning a tracking system is required; while there are also fears that some offsets will be negated by human activity, such as the change in land use, or by natural occurrences such as forest fires and disease.

Furthermore, critics have expressed doubts about the transaction costs involved in an exchange of services and that offsets may be a disincentive for developing countries to introduce regulations that limit greenhouse gas emissions. For example, if a developing nation established regulations for the reduction of certain emission sources then they would no longer qualify for offsets. There are also concerns about ‘leakage’ – for example, if the US capped emissions from a specific industry it may relocate elsewhere and so the level of global emissions would not be reduced.

So can offsets work?

If the ultimate aim of climate change legislation is to reduce greenhouse gas emissions then it doesn’t matter where these reductions take place. For example, if a ton of CO2 is emitted in the UK or the US, then as long as a ton is reduced in another nation the atmospheric concentration remains the same.

As a result, there’s no denying the potential of offsets. They can offer environmental benefits, provide incentives for non-regulated sources to reduce emissions, support sustainable development and create economic opportunities both in developing and developed nations.

However, the primary concern is about the integrity of emission offsets and whether or not they can truly be quantified and measured. If regulations can be established to ensure the integrity of offsets – and that in itself will prove a laborious and complicated task – then surely their benefits will thrive and establish offsets as a key weapon in the ongoing fight against climate change.

Faye Sunderland

The three-year fleet trial of the Fuso Canter Eco Hybrid has reached the halfway stage in the London area.

The trial kicked off in August 2008 when 10 light duty trucks equipped with hybrid drive systems were put to work in the city. They have since clocked around 164,663miles collectively in eight fleets operated by customers and remain in service every day travelling anything from 249-1,740miles a month.

According to Daimler, the hybrid technology has proven reliable over the 18month period including the lithium-ion battery. Depending on the particular application, the Fuso Canter Eco Hybrid also uses around 10-15 per cent less fuel than a conventional light duty truck, with CO2 emission reductions at corresponding levels.

Fumio Akikawa, the head of the Global Hybrid Centre in Kawasaki, Japan, commented that the company is already working on the next generation of the Fuso Canter Eco Hybrid and that a more powerful electric motor may be conceivable in an effort to lower fuel consumption further.

In addition to the 10 vehicles participating in the London fleet trial, the Mitsubishi Fuso Truck and Bus Corporation will also deliver series production vehicles to Hong Kong, Ireland and Australia this year.

The eyes of the motoring world, barely resting after Geneva, will soon turn to New York where Chevrolet is planning to debut a new high-efficiency version of its popular Cruze model.

The 2011 Cruze Eco will deliver an estimated 40mpg on the highway using a 1.4l Ecotec turbo engine with variable valve timing and a six-speed manual transmission. City mpg estimates will be available closer to its launch, which is scheduled for the fourth quarter of this year.

The Cruze benefits from a number of features meant to enhance its environmental performance including minimised weight, reduced rolling resistance and enhanced aerodynamics. A low front grille air shutter closes at higher speeds to boost aerodynamics while the upper grille also has more closeouts. A lower front air dam extension, underbody panels and a rear spoiler further boost the aerodynamics; while the axle ratio on the manual transmission is also optimised for fuel economy.

Performance is not sacrificed, however. The Cruze’s 1.4l Ecotec turbo engine can produce 200Nm of torque and has a cruising range of more than 500miles. It has the power of a larger engine with the efficiency of a small-displacement four-cylinder and can race from 0-60mph in around 10 seconds with the manual transmission and nine seconds with the six-speed automatic.

The new Chevrolet Cruze Eco will be produced at Lordstown, Ohio, with the company having announced that it will add 1,200 workers to ramp-up production after $350million was invested in re-tooling the plant and adding new manufacturing equipment.

You’ve probably already heard about Ford’s decision to sell the Volvo Car Corporation and its related assets to Zhejiang Geely Holding Group Company Limited – and now we can bring you the details of the deal.

The sale is expected to close in the third quarter of this year with the purchase price of Volvo Cars set at $1.8billion. This will be paid with a note for $200million and the rest in cash. The cash portion is expected to be adjusted at the close relating to pension deficits, debts, working capital and so on.

Ford will continue to play a role with Volvo in several areas after the sale has been completed to help ensure a smooth transition. However, it will not retain any ownership.

Once the sale is complete Ford will continue to supply Volvo with powertrains, stampings and other vehicle components; and as a condition of the sale it has also committed to providing engineering support along with information technology and other selected services.

Both Ford and Geely have reached an agreement to govern the use of intellectual property and these agreements will also allow Volvo Cars to grant sub-licences to certain portions of Ford’s intellectual property.

According to Li Shufu, the chairman of Zhejiang Geely Holding Group Company Limited, Volvo will be run by Volvo management and will have strategic independence. The company is determined to preserve its distinct identity while maintaining the existing footprint and sales network.  

Optimistically, Stephen Odell, the CEO of Volvo Cars, noted that while Volvo is currently selling more than 30,000 units a year in the Chinese market that could be as large as 17million a year.

So-called ‘talking cars’ took to the roads for the first time in Europe on Wednesday(March 24), after a trial of the technology took place in Amsterdam.

A fleet of cars able to communicate with each other and with road infrastructure (traffic signs, lights, management centres) drove alongside everyday traffic around Amsterdam Airport last week.

The information exchanged with other cars and infrastructure gives drivers additional information, such as hidden hazards, beyond what they can see and hear as well as helping the cars take the least congested route and save fuel by planning ahead. This road test aims to demonstrate that cooperative mobility, using vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, is working and has the potential to make car trips safer and more energy efficient.

Funded by the European Commission, the trial is one of three European research projects, COOPERS, CVIS and SAFESPOT, that were presented in Amsterdam as part of the Cooperative Mobility Showcase 2010 conference.

These projects in the field of Information and Communication Technologies (ICT) for transport have conducted research on all aspects of vehicle-to-vehicle and vehicle-to-infrastructure communication. They have developed key building blocks for cooperative mobility such as communication networks between cars and the infrastructure or improved techniques to localise vehicles on the move. Since 2006, the European Commission has co-financed COOPERS, CVIS and SAFESPOT with €52 million from EU research funds.

EU Digital Agenda Commissioner Neelie Kroes said: "Cooperative systems and services like those in our ‘talking’ cars stand to bring real added value for Europe’s drivers. They can help to promote safe and smart mobility in Europe, leading to fewer fatalities and injuries and a lower CO2 footprint. These ‘talking’ cars projects are also good examples of Europe’s efforts to boost research and innovation in manufacturing industry, at a time of financial and economic turmoil. Such projects stimulate the active involvement of business and contribute to meeting the Europe 2020 Strategy’s objective of smart growth based on knowledge and innovation."

The European Standards Organisations is start to develop the standards needed to enable the introduction of V2V and V2I vehicles, with a stable set of standards expected by the end of 2013. Mass market introduction of cooperative mobility systems by all brands of carmakers and equipment builders is possible as of 2015.

The rumours are true; Mazda is to introduce a hybrid model using Toyota Prius technology.

Yesterday contradicting reports speculated on whether the Japanese car giant was to agree to licence its hybrid technology to its fellow Japanese brand (see our story). This morning the world’s largest carmaker announced that it has indeed agreed to let its smaller counterpart utilise its Prius technology.

Mazda intends to combine this hybrid system technology with its SKY1 engines, currently under development. The firm aims to develop and manufacture a hybrid vehicle in Japan and commence sales of a hybrid vehicle starting in its home country by 2013.

Toyota Motor Corporation has also announced that as part of its strategy to popularise eco-friendly vehicles, that it will consider licensing its hybrid system to other companies too, thus potentially leading other carmakers to make similar agreements with the car giant.

Based on its long-term vision for technology development, Sustainable Zoom-Zoom, Mazda aims to increase the average fuel economy of Mazda vehicles sold globally by 30 percent by 2015, compared to its 2008 level. Under this strategy, Mazda will enhance the core aspects of its vehicles — including engines, transmissions and weight reduction — and then progressively add electric devices such as idling stop, regenerative braking and hybrid systems.

The Prius was the world’s first mass-production hybrid vehicle, introduced way back in 1997. Since then, over 2.3 million Toyota-built hybrid vehicles have been delivered to customers in over 70 countries and regions.

Through this partnership, each company intends to offer technologies and products with ‘outstanding environmental benefits’ to as many people as possible, the firms said in a joint statement.

Business minister, Ian Lucas paid a visit to Ellesmere Port this morning to tour the production line of the Vauxhall plant based there.

After the UK made a £270m loan guarantee to the European arm of General Motors (GM)- which consists of the Vauxhall and Opel brands-the Government has been keen to see the investment into Vauxhall’s two UK plants.

GM is expected to announce the European production base of its new range-extended electric vehicle, the Ampera, in the near future (see story). As a result, the Government is hoping that Ellesmere Port-already home of the Astra –could be the plant to produce the innovative model set to retail in Europe by 2012.

Renowned as a highly efficient plant, Ellesmere Port, along with the Luton-based plant have been benefitting from a £1.7 billion investment into European production from parent company GM. GM announced the fund, to be shared across its European operations, after the car giant reversed a decision to sell the Vauxhall/Opel brands.

Commenting Business Minister Ian Lucas said: “Ellesmere Port is a world-class manufacturing facility providing employment for more than 2,000 people in the North West. This has been achieved by making itself one of the most competitive and productive plants.

“Investment from companies such as Vauxhall is a vote of confidence in the UK and British manufacturing skills.”

As part of the UK’s Ultra Low Carbon Vehicles strategy, the Government set the target of making the UK one of the best places in the world to research, design or build low carbon vehicles. A cross-Government team, the Office for Low Emission Vehicles (OLEV) was set up to deliver this.

Since then, consumer incentives and infrastructure funding schemes such as the Plug-In Car Grant and Plugged in Places, have been announced to help place the UK at the forefront of an electric car revolution.

In last week’s Budget, the Government announced further support for low carbon cars, announcing that company car tax is to be halved for cars which emit less than 75g/km of CO2.

Hinting that he hopes this investment in a low carbon future will attract further electric car manufacturing to the UK, Lucas added: “There has been good news for car manufacturing recently, and the Government is doing all it can to help the industry transition to meet future demand for low carbon vehicles.”

Nissan has already confirmed that the all-electric LEAF will be built at its Sunderland plant while Ford recently announced that it is to invest £1.5 billion into research and development of low carbon engines at its UK plants.

Millions of people around the world joined forces on Saturday (March 26) to mark WWF’s Earth Hour- an annual global event that highlights public support for action on climate change.

In the event’s biggest ever switch-off, 125 countries across seven continents including more than 4,000 cities and towns, took part in the event, which asked people to sign up and switch off their lights for one hour; to show that they care about tackling climate change.

The world’s great man-made marvels and natural wonders were plunged into darkness, from the Eiffel Tower, the Las Vegas Strip and the Empire State Building, to Table Mountain, Mount Rushmore and the Sydney Opera House. Key participating UK landmarks included Buckingham Palace, Windsor Castle, Number 10 Downing Street, Edinburgh Castle, Belfast City Hall and Wales Millennium Stadium.

“The largest ever number of countries, people and landmarks joined forces for Earth Hour this year. It was a visible demonstration of the enormous level of support there is around the world, for a united effort to tackle climate change,” said David Nussbaum, CEO of WWF-UK. “WWF now asks that world leaders listen to the millions of people who took part, and finish the job they started in Copenhagen last year by creating a fair and ambitious global climate deal.”

UN Secretary General, Ban Ki-moon, praised the event, saying:“Earth Hour is both a warning and a beacon of hope.  By switching off non-essential lights for an hour, people will join a symbolic display that can inspire the change we so urgently need.  As we watch the lights go out from continent to continent, let us reflect on the fragility and importance of our natural heritage and pledge to protect it for a sustainable future for all.”

The environmental charity’s event has proven a massive hit, with trends showing that Earth Hour has captured the imagination of people across the world. On Saturday Earth Hour consistently made the top three topics on Twitter while on Google, Earth Hour registered 56.1 million mentions of the event.

The Renault-Nissan Alliance has been making huge waves with its progression of electric cars and now it could have another ally in the form of German manufacturer, Daimler.

The parent company of Mercedes-Benz and Smart is reportedly in talks with Nissan to procure large engines and co-operate on the development of green cars.

Renault is already in partnership talks with Daimler and holds a 44.3 per cent stake in Nissan, so the Nikkei suggests that the talks will soon be a three-way affair. An agreement, which could be reached by April, could include cross-shareholdings with Nissan considering procuring large diesel engines and V-8 petrol engines from Daimler to reduce its development costs which are essential as it calls on massive financial resources to further develop green technology.

In addition, the companies will co-operate on areas such as the procurement of materials and environmental technologies, such as electric vehicles, with Daimler tapping into Renault-Nissan’s competitive edge in the sector.

Renault and Nissan would take around a three per cent stake in Daimler. The combined global sales of the three automakers in 2009 totaled about 7.64 million units. As such it would be the third largest group if a partnership was formed – trailing only the 8.62 million units sold by Germany’s Volkswagen AG and Japan’s Suzuki Motor Corporation – which recently agreed a capital tie-up – and the 7.81 million vehicles sold by the Toyota Motor Corporation.