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You are a Volkswagen executive deciding which is the best way to improve the environment, after your plans for the sale of large numbers of diesel-powered cars were shelved. You have to decide between producing a 60% more efficient gasoline-powered VW Golf, or continue producing the e-Golf, an electric powered vehicle. Calculate and explain which option produces the least amount of Carbon Dioxide emissions, assuming:

-The current 2015 gasoline-powered Volkswagen Golf emits 62 g C/km

-Average emission rate for electricity in the USA was 1,232 lbs CO2/MWhr

-Development, manufacturing and recycling costs are identical

-The Volkswagen e-Golf has a combined fuel economy of 29 kWhrs/100 mi

-The Rebound Effect is perfectly balanced by Range Anxiety for electric car buyers, so buyers of the electric car would drive the same distance per year.

-Buyers of the more efficient gasoline-powered car will drive 10% more per year

-Average car miles per year is 12,000 before any changes.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91580200

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