NAFTA Bad For Mexico's Air Quality
by Andrew Posner, Rhode Island, USA on 02.17.08
You've just traded in your old junker for a brand new, fuel-efficient car. It's quiet, clean, and leaves your friends 'green' with envy. You feel mighty good about the purchase, and well you should, right? Well, according to a recent Los Angeles Times article, not quite. Turns out many of those "old gas guzzlers just won't die." That's because
More than 3 million late-model vehicles have rumbled legally south of the border in the last 2 1/2 years. Millions more are on the way, thanks to the North American Free Trade Agreement.The vintage metal is rattling Mexico's retail car market. Sales of new vehicles have stalled at 1.1 million a year as used imports have overtaken them. Sales of new subcompacts -- the most popular class of cars in Mexico because of their price -- skidded 16.4% last year as buyers snapped up cheaper, roomier used vehicles from the U.S.
It used to be that Mexico "restricted imports of used vehicles and slapped hefty taxes on new ones," but in 2005, in order to meet its NAFTA obligations, the Mexican government began "opening its market to some used vehicles from the U.S. and Canada." As a result, more than 13% person of Mexico's vehicles are imported used cars from the American and Canadian markets. This has had a ripple effect on the Big Three, "for which Mexico has been an important consumer of new vehicles." But it has also impacted air quality, because though there are smog standards on the books, "Mexico has yet to put a comprehensive testing system in place."
Already, towns bordering the U.S. have seen a tremendous upsurge in vehicle ownership, as inexpensive, dirty imports flood the market. In Juarez alone, ownership is "much higher than the Mexican average: one car for every two adults compared with 1 for every 5 nationwide." The concern among environmentalists is that as the U.S. fleet turns over and more high-mileage, inexpensive and inefficient cars enter the market, air pollution and congestion will intensify. This is on top of the fact that car use in Mexico City has doubled over the last 7 years. Still, there is cause for optimism. "Although NAFTA will allow very old used cars to be imported to Mexico, it will eventually permit newer ones to enter as well. That should lower prices and enable buyers to upgrade to cleaner vehicles." Additionally, Mexico City is committed to building more Bus Rapid Transit Lines and building 186 Miles of Bike Paths by 2012.
This kind of news ought the renew the debate about which is greener, buying new or keeping old.
Via: ::LA Times
See Also: ::Mexico Approves Corn and Sugar Cane Ethanol Law::Mexico City Launches "Green Plan", ::First North American Energy Agreement Inked, ::In Harper's Magazine: The Battle for the Melting North, ::John Sewell on Import Substitution, ::Friedman of the Week Dept: Save the Planet, Vote Smart, ::Taxing the Way to Fuel Efficiency in the UK, and ::Young Chinese: Cars First, Then Sustainable Consumption.
This is a case of basic I Trade econ.
Free trade leads to increased productivity and wealth through comparative advantage and specialization. So Mexico will get wealthier and thus buy more useless junk. This increase of consumption is not so great for the earth. But since wealthier nations and people care about the environment more than poorer ones, the increase in Mexican wealth will lead to an increase of Mexican environmental stewardship.
The problem is that takes a while. So the question is, which will happen first: Increasing Mexican wealth will make them a greener nation or increasing mexican consumption will strain their natural resources to an irreversible level?
Free trade? yes, but it also means we have in effect, exported our problems to Mexico. Anyone for a program that would scrap old or fuel inefficient cars ?
This being said, these cars ARE being reused, and with gas is comparatively more expensive in Mexico compared to the US, when measured w/regards to relative income. I'm not certain these cars are having as adverse an environmental impact in Mexico than they would in the US, where they would be driven A LOT more often than they are in Mexico. PLUS, Mexicans cannot afford new, efficient cars anyway. We should strive to reuse what's aready been built, hopefully in a more efficient way. I'm sure a lot of these vehicles are taxis and business vehicles, not some little wasteful family van shuttle to soccer practice and the mall.
Or that could mean a more increase in research to make fuel-efficient trucks running on renewable energy sources?
You don't have to be so negative.
"Anyone for a program that would scrap old or fuel inefficient cars ?"
Dallas TX does this in a way, they offer $3,000 vouchers that can be applied to a new or used car purchase at participating dealers. Their is a maximum income requirement, and restrictions on what year/condition car that can be applied to this. I don't know how they ensure the cars are recycled and not resold, but apparently their is a waiting list to get the vouchers.
Some buy inexpensive new compact cars, or mid size relatively low mileage used cars, so it appears the intended purpose is met, get old smoking cars off the road.
IIRC, cars are the second most recycled item, second to lead acid batteries. If it has dollar value, it will be reused or recycled by somebody.