Two reports agree: new CO2 limits will raise the price of European Cars

Two recent reports have arrived at the same conclusion: If the average emission for cars sold in the European Union is to be kept under 120 g of CO2 per km, cars are going to cost more - a significant amount of Euros more.

One of these two reports, conducted by TNO Research, says that the additional figure on the sticker price is going to be 3,600 EUR - just for technology-related costs. The second report, made by Lehman Brothers (called "Climate Change Business II") puts the accent on how the new rules will alter markets: in a country where CO2-related taxes are high, the market will adapt and make the consumers buy smaller cars, potentially affecting some carmakers. The latter report also includes very interesting data on the cost of each produced ton of CO2. Whereas the European Commission puts the price in $620 US, the "reasonable" figure should be $14.

Finally, the Lehman Brothers report states that carmakers have done their homework. The average passenger car CO2 emissions in the EU have been lowered from 186 g/km in 1995 to 160 g/km in 2006, while implementing the Euro III and IV rules and increasing safety. Nevertheless, the global figure of emissions has increased 32 percent during the same timespan. Part of that increase is due to European roads that have gained two percent more cars every year and the fact that Europeans are also driving two percent further every year. Another factor to put the blame on is the increase of traffic jams.

[Source: Europa Press via Econoticias]

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