The European economic recovery plan: eco-innovation and car scraping schemes in the United Kingdom and France automobile industry

Publication Type:

Conference Paper


Gerpisa colloquium, Berlin (2010)


car eco-innovation, car scrapping schemes, clean technology, European Economic Recovery Plan


María Hortensia LACAYO OJEDA, Mary Carmen RIQUELME LACAYO,
Universidad Nacional Autónoma de México (UNAM), Mexico
The global economic crisis has put unprecedented pressure on European economy. The European Union is suffering from a significant shortfall in demand; unemployment has risen; financial markets remain volatile and credit channels are not yet functioning as desired for European economic recovery. Because the automobile industry is a main economic activity in Europe, it has suffered the problems caused from the crisis.  
All these problems represent a big challenge for the European institutions’ coordination capacity, for the Member States’ solidarity and for the reaction capacity of regional economy to face the global crisis.
The European Commission has proposed a European Economic Recovery Plan, which combines coordinated national action with European Union (EU) measures and budgetary support to the economy to boost purchasing power and generate growth and jobs.
 It seems clear to Member States that the crisis should not deflect attention from the EU’s longer-term interests and the need to invest in its future. This is why the European Economic Recovery Plan identifies a number of green measures that include actions on climate change, energy efficiency, clean technologies, developing green skills and promoting green products.
Concerning the transport sector and specifically the automobile industry, Member States are introducing car scrapping schemes which aim to encourage replacement of cars over certain age by new cars with lower emissions. Several national recovery plans also put an emphasis on eco-innovation such as electrical and plug-in hybrid cars, second-generation biofuels and other lower carbon technologies.
This paper aims to analyse the main green measures for economic recovery concerning the automobile industry in France and the United Kingdom, such as the car scrapping schemes and eco-innovation.  

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