Tag: barrett

U.S. Motorcycles to Rev Up in China?

Many American manufacturing companies are trying to break into the Chinese market. With about a billion people, the idea of selling goods in China is an attractive one, but the GLRC’s Christina Shockley has the story of one company that’s having a hard time reaching Chinese citizens. That’s because local environment and safety regulations often stand in the way:

Transcript

Many American manufacturing companies are trying to break into the Chinese market.
With about a billion people, the idea of selling goods in China is an attractive one, but
the GLRC’s Christina Shockley has the story of one company that’s having a hard time reaching
Chinese citizens. That’s because local environment and safety regulations often stand in the way:


Motorcycle maker Harley-Davidson opened a dealership in Beijing in April. It’s the
company’s first shop in China in at least 60 years.


Robert Kennedy is Executive Director of the William Davidson Institute at the University
of Michigan. The institute studies business and policy issues in emerging markets.
Kennedy says there’s a huge demand in countries like China for products associated with
the American way of life. He says Harley-Davidson motorcycles are a prime example:


“I mean, they’re associated with a particular lifestyle here, it’s a very American thing.
And they have very low penetration in China and India, and these other countries now,
but because there’s slowed demand growth in the US, if they want to grow, that’s a great
place for them to go.”


Kennedy says it’s very common for companies to try to ease restrictions in other
countries to make it easier for them to export goods and there are several restrictions on
motorcycles in China. The rules vary from community to community, but most large
cities ban, or severely limit, motorcycle use in the city center.


Experts say the rules are in place partly because of safety and environmental issues.
Barrett McCormick specializes in Chinese politics at Marquette University. He says
environmental problems can be intensified because Chinese roads are clogged, and most
motorcycles there are dirty:


“Anyone who’s been to China 10 years ago or something, a common site is some horrible
little motorcycle putting down the road, with a big cloud of smoke behind it, and I think that’s
the kind of thing that the Chinese government has regulated to eliminate.”


McCormick says air quality is one of China’s most pressing problems. A recent report
from the World Health Organization says many of the most polluted cities in the world
are in China. It says one of the main sources of air pollution there is motor vehicles
emissions.


Zhixin Wu is with a company that’s working with government agencies to develop
Chinese transportation policies. He says emissions from dirty, small motorcycles in
china account for roughly 50 or 60 percent of emissions in urban areas:


“In China almost all the motorcycles use the two stroke internal combustion engine.”


Wu says that type of small engine is very dirty. But, Harley-Davidson says those bikes
are a far cry from the motorcycles it produces:


“The motorcycles in use in China, I guess I wouldn’t even characterize them as
motorcycles. I would call them two-wheelers.”


Tim Hoelter is the company’s Vice President for International Affairs. He says Harley
bikes easily meet environmental regulations in every market in which they’re sold. And
Hoelter says the company is working with officials in the United States and China to get
this point across:


“Not too long ago the Chinese ambassador to the United States came to Milwaukee and
met with local business people. I sat two seats away from him at dinner, and was able to
talk to him about these riding bans.”


Hoelter says the company is also meeting with American trade officials, and authorities
in the Chinese government, to get the rules changed. He says his company has already
helped ease motorcycle restrictions in other countries, such as Vietnam and India.


Robert Kennedy, from the William Davidson Institute, says Harley-Davidson will
probably be able to get the rules changed in a few years, assuming the regulations have
the inadvertent affect of keeping out Harley motorcycles. He says China has a huge trade
surplus with the United States, and that’s a sensitive political issue.


Kennedy says it’s not unusual for countries to have rules that keep foreign goods out,
even if that’s not their intent:


“The US has some of these regulations that keep out other countries products, and other
countries have regulations that keep out our products. It’s not like under the Romans or
the British where a country would send in the army and force them to buy our goods, it’s
just governments working together to sort out the details to allow trade to happen.


Kennedy says even though most Chinese wouldn’t be able to afford Harley motorcycles,
there are many who could, and as people there become more wealthy, the possibility
exists for a huge market.


For the GLRC, I’m Christina Shockley.

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School Districts Encouraging Urban Sprawl?

  • School districts tend to like bigger homes on larger lots because the districts rely so heavily on property taxes. (Photo courtesy of USDA)

Each year, Americans build a staggering one and a half million new homes. A lot of environmentalists say too many of these houses are big, single family homes on spacious lots. They say that wastes farmland and natural areas. But suburban planners say they’re forced to build that way by local governments, such as school districts. The GLRC’s Shawn Allee has more:

Transcript

Each year, Americans build a staggering one and a half million new
homes. A lot of environmentalists say too many of these houses are big,
single family homes on spacious lots. They say that wastes farmland and
natural areas, but suburban planners say they’re forced to build that way
by local governments, such as school districts. The GLRC’s Shawn
Allee has more:


Jamie Bigelow makes a living building houses in suburbia. He takes a
dim view of his profession. For Bigelow, most suburbs don’t let
neighbors be… well, good neighbors. After all, homes are too far apart
for people to really meet one another and everyone has to drive far for
work or to just go shopping. According to Bigelow, families are looking
for something better.


“We believe there’s a growing market for people who want to be
interconnected and live in interconnected neighborhoods and housing,
primarily in the suburbs, no longer supplies that.”


So, about ten years ago, Bigelow and his father tried building one of these
interconnected neighborhoods in a Chicago suburb. They wanted shops
and parks nearby. They also wanted to close some streets to cars, so kids
could play safely near home, but one detail nearly derailed the project.


Under the plan, houses would sit close together on small lots. The local
zoning board hated this idea. According to Bigelow, they said small houses
would break the local school district’s budget.


“They want large houses on large lots, because for the school district,
that will give them a lot of taxes with not as many kids because there’s
not as many houses.”


The planners wanted Bigelow to build bigger, pricier houses. Bigelow and his
family fought that and eventually won. They did build that compact suburban
neighborhood, but victories like that are rare. Often, the area’s local
governments try to protect schools’ tax revenue by promoting large homes and lawns.


“They’re actually behaving, or reacting, very rationally.”


That’s MarySue Barrett of the Metropolitan Planning Council, a
Chicago-based planning and advocacy group. She says growth
sometimes overwhelms schools, and it can catch taxpayers and parents
off guard.


“They don’t have the revenue from their local property tax to pay for
hiring new teachers, so their class sizes become thirty-two, thirty-three.
And that family who said, Wait a minute, I came out here for good schools, now
I’m going to an overcrowded school? It’s the last thing I thought was
going to happen.”


From the schools’ perspective, larger lot sizes solve this problem. Big
lots mean fewer kids per acre. Larger houses bring in more property
taxes. That means higher taxes cover costs for the few kids who do
move in.


Barrett says the trend’s strongest in states like Illinois, where schools rely
heavily on property taxes. She says in the short term, the strategy keeps
schools flush, but it also pushes the suburban frontier outward, into rural
areas. That wastes land and hurts our quality of life.


(Sound of kids coming out of school)


The day’s over for this high school in Northern Illinois. A throng of
teens heads toward a line of thirty yellow school buses. Some of them
spend up to three hours per day riding between school and home.


Inside, Superintendent Charles McCormick explains what’s behind the
long rides. He says the district’s large size is partly to blame, but there’s
another reason. The area’s subdivisions are spread among corn fields,
far from existing towns and from each other.


“Well, the land use pattern itself disperses the students, so when you look
at what bus routing means, the position of one student can add ten to
fifteen minutes to a route.”


McCormick says local governments in his school district encouraged big
homes and lots, but even his schools can barely keep up with the costs of
educating new students. He says suburban planners just can’t risk
bringing in smaller homes and more kids.


“Well, if you were to run a business the way growth affects school districts,
you’d be broke because you cannot keep up with rapid growth that produces
for every student, a deficit.”


That’s because even high property taxes don’t fully pay for each
student’s education.


Land use experts say reliance on property taxes for education puts
suburbs in a tight spot. Some want to try allowing smaller homes or
even apartments, but school funding’s a stumbling block.


Like other reformers, MarySue Barrett has been pushing for an
alternative. She wants state government to kick in a bigger share of
education dollars. The idea’s to have enough funding for each kid, regardless
of how large or expensive their home is.


“And if we have a different way of paying for our schools that’s less
dependent on the property tax, we’ll begin to move away from this
problem that’s put a choke hold on so many communities.”


It will be an uphill fight, because states are reluctant to change their tax
structures, but Barrett says it’s the worth the political cost. She says, if
we want alternatives to suburban sprawl and its traffic congestion, we
need new ways to pay for education.


For the GLRC, I’m Shawn Allee.

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Ten Threats: Southwest After Great Lakes Water?

  • This billboard was displayed along several major highways in Michigan. The sponsors were hoping to raise awareness about water diversion, but do these arid states really pose a threat to the Great Lakes? (Photo courtesy of Central Michigan Life )

We’re continuing our series on the Great Lakes. One of the Ten Threats to the Great Lakes that experts identified was water withdrawals. Our guide in this series, Lester Graham, says the next report looks at one of the myths of water withdrawals:

Transcript

We’re continuing our series on the Great Lakes. One of the Ten Threats
to the Great Lakes that experts identified was water withdrawals. Our
guide in this series, Lester Graham, says the next report looks at one of
the myths of water withdrawals.

Environmentalists and policy makers say a thirsty world could pose a
major threat to the Great Lakes. Water wars have been predicted in arid
parts of the globe, and some say the laws of supply and demand might
one-day lead to a raid on the region’s fresh water. Reporter Mark Brush takes a
closer look at one claim: that states in the southwest will one day come
after the Great Lakes water… and finds that it might just be H2O hype…


Taking water out of the Great Lakes is a hot button issue, and no one is
more aware of this than politicians looking for votes. In the 2004
campaign, President Bush used the issue to rally a crowd in Traverse
City, Michigan:


“My position is clear. We are never going to allow the diversion of
Great Lakes water.”


(Sound of applause)


The issue taps into people’s emotions. People get outraged when they think
of someone taking water out of the Lakes – especially when they’ve seen lake
levels dropping over the years, and the region’s political leaders have listened
to those concerns. The states and provinces that surround the world’s largest fresh
water system are working on a compact that will prevent water diversions.


But where is the threat to Great Lakes water coming from? We
conducted an informal poll on the streets of Ann Arbor, and we asked
people: “who wants water from the Great Lakes?” Six out of the ten
people we talked to pointed to the west:


(Sound of street)


“Las Vegas, the Southwest.”


“Probably the dry states in the West. Arizona, Nevada.”


“I think the west should keep their damn hands off our water.”


But do the arid states in the West really pose a threat to Great Lakes
water? It turns out – this same question was asked more than twenty
years ago.


In the 1980s, the U.S. Army Corps of Engineers studied the possibility of
moving Lake Superior water to the Missouri River. It’s a distance of
about six hundred miles. Farmers in the High Plains states were hoping
to use this water to irrigate their crops.


Jonathan Bulkley is a professor of civil and environmental engineering at
the University of Michigan. Bulkley and his colleagues analyzed this
diversion plan, and he says the whole project would have been too
expensive:


“We found it would take seven 1000 megawatt power plants dedicated to
lifting the water, because water needs to be lifted to reach these distant
locations, and in addition there would have to be conveyance structures
built to transport the water, and our conclusion was the total cost would
far exceed the value of the water.”


In other words, Bulkley found that it would be cheaper for these states to
find other sources of water – or to find ways to conserve the water they
had left, and this was a diversion of only 600 miles. A diversion all the
way to the Southwest would mean piping the water almost twice that
distance.


“We are always looking for extra water – everyone in the Southwest is
looking for extra water.”


Bob Barrett is a spokesperson for the Central Arizona Project. It’s one of
the biggest water suppliers in the Southwest. The Project pulls water
from the Colorado River and delivers it to southern Arizona. Barrett
says he can’t imagine a situation where Great Lakes water is pumped for
more than a thousand miles to the Colorado River:


“Most people don’t realize it, but a gallon of water weighs about eight
pounds, and if you’re going to push that up and over the Rocky
Mountains you’re going to need a lot of power. (Laughs) So, it’s a good
idea, but I don’t see how anybody could pay for it.”


But some observers say even though it might not happen today – it could
happen in the future. They point to a fast-growing population and a fast-
dwindling fresh water supply in the southwest. They say that
combination could drive engineers and policy makers to devise a way to
get Great Lakes water.


But Barrett says for states like Arizona, California, and even Texas – it
would be cheaper for them to build desalinization plants… these plants
convert ocean water into drinking water:


“I mean why should Texas build for a canal and then have to maintain it
from the Great Lakes down to the state of Texas when they can go to the
Gulf Coast and build several desalinization plants, and then just pipe it
wherever they need it?”


So, a large-scale water diversion to the southwest seems unlikely.
Experts say water from the Great Lakes is much more likely to go to
cities and towns right on the edge of the basin, but as legislators move to
tighten restrictions on diversions – even these places will
have a hard time getting access to the water.


For the GLRC, I’m Mark Brush.

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