The Impact of Diesel Ban on Big Automobile Organizations in the UK

This dissertation investigates the multifaceted impact of the diesel ban on large automobile organizations in the UK. It begins with an introduction outlining the background, aims, objectives, and methodology, focusing on the environmental and economic implications of the ban. The literature review explores existing research on diesel engine usage, environmental regulations, and corporate social responsibility. The methodology section details the research philosophy, design, strategy, data collection methods (including primary and secondary data), sampling techniques, and data analysis approach. The results and analysis chapter presents descriptive statistics and hypothesis testing to assess the ban's effects on the industry and public health. The discussion of results interprets the findings, followed by a conclusion and recommendations for future research and policy. The study aims to determine whether the diesel ban is beneficial, its impact on the UK economy, and the alternatives available to companies. This dissertation provides a comprehensive analysis of the challenges and opportunities arising from the diesel ban in the UK automobile sector.

DISSERTATION

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Introduction...........................................................................................................................1
1.2 Background of research.........................................................................................................2
1.3 Aim and Objectives...............................................................................................................3
1.4 Outline of methodology........................................................................................................4
1.5 Significance of research........................................................................................................5
1.6 Structure of dissertation........................................................................................................5
CHAPTER 2: LITERATURE REVIEW ........................................................................................7
CHAPTER 3: RESEARCH METHODOLOGIES........................................................................19
CHAPTER 4: RESULTS AND ANALYSIS................................................................................24
4.1 Chapter overview................................................................................................................24
4.2 Descriptive analysis ...........................................................................................................24
4.3 Hypotheses test ..................................................................................................................47
CHAPTER 5 DISCUSSION OF RESULTS...................................................................................1
5.1 Chapter overview..................................................................................................................1
CHAPTER 6 CONCLUSION AND RECOMMENDATION........................................................6
6.1 Chapter overview..................................................................................................................6
6.2 Conclusion.............................................................................................................................6
6.3 Research implications/ recommendations/ contributions......................................................7
6.4 Research limitations and further research.............................................................................8
REFERENCES:.............................................................................................................................10
Appendix........................................................................................................................................12

CHAPTER 1: INTRODUCTION
Title -
“To analyse the impact of ban on diesel cars and engines on big auto mobile organisation
in the UK.
1.1 Introduction
The change in dynamic world is impacting both industries and environment. Businesses
are utilising resources without analysing their negative impact. So, business operations are
polluting environment adversely. This has resulted in formulation of strict actions by government
to protect the environment (Tutak and et.al. 2015). In an economy diesel plays a vital role. It is
the core raw material of some industries that helps in production of goods. Also, diesel engines
are most reliable source that is used in machines and cars. Besides this, it is very economical fuel
which is useful boosting durability and power of automotive. But in recent time an issue has
emerged related to use of diesel engines in UK. It is because high use of diesel is affecting
environment to a great extent. Moreover, due to change in environmental laws, UK government
has enforced guidelines to companies regarding this. This has affected the business and their
growth. Also, it has increased the cost of goods. On the contrary, banning diesel is the only way
through which environment can be protected. This will promote public safety by applying
environmental laws and regulations. Apart from this, by banning diesel engine people will be
provided free environment to breathe. Moreover, it will reduce the health hazards that are related
to diesel. In this way, a clean and green environment will be created. The lifestyle of people will
be enhanced. In UK, there are many large scale organisations that use diesel engines. They are
highly dependent on this. So, ban of engines will lead to decline in industry and downfall in GDP
of nation (Palash and et.al., 2014). In addition to this, it also includes the threats that can lead to
major consequences. Companies will focus on other countries to expand their business. They
will oppose this decision. Alongside auto mobile, other sector will also be affected that used
diesel engine as raw material. In addition to this, farming and retail sector will also have negative
impact. Also, increase in number of sales of car, the pollution level has also raised. UK

government has decided to completely ban diesel engines and cars till 2040. The decision has
impacted very badly and in 2017, there has decline of 5.7% in car sales.
In present era, there has been a great change in climatic condition of globe. It is due to
increase in global warming. This has changed the weather condition of some countries. After the
incident of great smog of London that occurred in 1952 in which many people were dead and
also many were infected, government has taken strict steps towards protecting the environment.
They do not want the similar situation to happen again. They have imposed several measures in
environment law (Guan, Zhao and Lin, 2018). It not only implies in UK but also in neighbouring
countries. It has helped in controlling the weather and enforcing companies to engage more in
corporate social responsibility activities. However, it has provided suggestions for company to
deal in issues. Inhaling poor quality of air is worse for an individual who smokes. It highly
affected his or her physical health and can lead to various air borne disease like asthma.
However, some it is expected that diesel ban will be very beneficial for UK. The positive
perspective will be that it will reduce pollution and provide a better environment to society.
Besides this, companies will more contribute in CSR. They will effectively follow rules and
regulations. Furthermore, company will be forced to use renewable resources. People will not be
prone to health hazards. It will give them fresh environment to breathe. Moreover, it will create
awareness among people to protect the environment (Bennett and Vijaygopal, 2018). The use of
hybrid car will become common. This initiative taken by UK will encourage other countries to
take some critical actions to protect the environment. Also, it will beneficial to people for long
term.
1.2 Background of research
Every country economy is dependent on oil. It is being used in most of the sectors. With
this good are manufactured. Oil is being highly consumed in form of petrol and diesel. They are
the backbone of economy. On the other hand, it is the reason of increase in pollution. Therefore,
many countries have taken strict steps to reduce pollution. In UK the government has decided to
ban diesel. This decision can highly affect their economy as big industries are dependent on
diesel machines. So banning of diesel will result in closing of industries. It will also increase the
cost of products that are produced by them. So it will create negative impact on GDP of nation.

The present study is being conducted for various reasons. It will help in identifying the
impact of banning of diesel on big companies. This means that what impact will have on their
operations and how other resources will be used by them. It will help researcher to identify this.
Another reason is to identify what impact will it have on UK economy (Kumar and et.al 2016).
Along with this, what impact will it have on other industries that are related to auto mobile
sector.
It is necessary for industries to use diesel engines so that production can be done. Besides
this, it is an essential element for auto mobile industry as well. It is because they manufacture
both petrol and diesel cars. So this has led to rise in pollution level of UK. However, if diesel is
banned it will be a huge loss to auto mobile sector. So companies have to focus on producing
hybrid cars. Thus, research is being conducted by researcher to identify that whether diesel
should be banned or not and what impact will be there if it is banned.
1.3 Aim and Objectives

Aim-
To ascertain whether Diesel should be banned or not and its impact on big automobile
organisations.
Objectives-
 To assess the reliability of banning diesel to protect and safeguard public health.
 To determine the extent to which banning diesel engines can curb health hazards in
society.
 To ascertain the contribution of UK based automobile companies in banning diesel
engine as a way of fulfilling their corporate social responsibilities (CSR).
 To analyse the influence of undertaking CSR on customer’s buying behaviour.
Research Questions
Along with aims and objectives there are some research questions also developed by
researcher. It is because it helps in answering those questions with the results. The questions
developed are as below :-
 What is the importance of providing green environment to society?
 What will be the impact on UK economy due to banning of diesel?
 What alternatives can be used by companies to replace the diesel engine.
 How effective are rules and regulations of the UK government to protect environment?
1.4 Outline of methodology
It describes the methods that will be used by researcher in conducting research. This
shows that how data will be collected and analysed. It is very important to identify methods so
that research can be conducted in smooth manner (Sanli and et.al 2015). The dissertation will
contain the following methods that are as below:-
Research Philosophy- there are four types of research philosophies that are used in research. For
present dissertation researcher will use the positivism philosophy. It will help in finding data
Research Design- It is used to analyse question data to conduct research in smooth way. In this
there are only guidelines that assists researcher. For the present research, design used will be
descriptive. It will help in interpreting data effectively.

Research Strategy – In this the research plan is developed that allows researcher to conduct
research in step by step manner. Generally, qualitative and quantitative methods are used in this.
Also, the present study will be conducted by using both strategies.
Data Collection: In this data is collected to obtain the results. There are two method of data
collection that are primary and secondary (Kinnal and et.al 2018). In this researcher will use
both these methods. The literature review will be done by secondary and in primary data will be
collected by taking interviews.
Sampling- In this sample is selected on which research will be conducted. It refers to the
selecting sample size from population. The researcher will use random sampling method and the
sample size will be 15 managers.
Data Analysis:- this is the most important element in research methodology. It is a process of
collecting and analysing data to obtain results. For present study researcher will use thematic
analysis (Guan and et.al 2017).
1.5 Significance of research
The significance of conducting present research is to identify the impact of ban of diesel
engines on auto mobile companies. Also, it is to take review of people regarding if diesel should
be banned or not. It will also help in providing suggestions or alternative options on what can be
used as a replacement of diesel engine. Beside this, there has been a lot of change in environment
related laws and regulations that is developed by government. Apart from this, it will also help in
evaluating the impact on other European countries due to diesel ban in UK.
1.6 Structure of dissertation
There is a particular structure that is followed in completing dissertation. In this it is
shown that how research will be conducted and what chapters are included in it (Ali and et.al
2016). With this researcher thoroughly analyse data so that aims and objectives can be achieved.
For present research the structure of dissertation is as follows :-
Chapter 1 Introduction: It is the first chapter in which introduction about the topic is described.
This makes it easy for user to understand about what the overall research is based on. There are
many things which is included in introduction that are aims and objectives, background,
significance, etc. These all gives a brief overview of entire dissertation.

Chapter 2 Literature Review: - in this chapter the entire theory related to secondary research is
explained. It gives a deep explanation to user about what has been said by different authors. For
this researcher analyse different journals and articles to collect and gather data and information.
Chapter 3 Research Methodology:- This chapter is the most important in dissertation as it
describes the research methods that will be applied by researcher. It helps in developing a proper
method so that research can be conducted in systematic manner (Alptekin, 2017). The methods
are selected according to nature and aims and objectives of research.
Chapter 4 Data Analysis and Finding- The overall research results are dependent on this
chapter. It is because in this the data is collected and analysed to obtain results. Also, data
analysed in presented in graphs so that it is easy for user to understand the findings. Data must be
analysed properly so that aims and objectives are achieved.
Chapter 5 Conclusion and Recommendation: It is the last chapter where researcher conclude
about entire research. Along with this, he or she describes some recommendations that can be
useful in the future for user or organisation.

CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
In this chapter the entire theory related to secondary research will be explained. It gives a
deep explanation to user about what has been said by different authors. This will make it easy for
user to measure his or her results with them. Moreover, the researcher must properly analyse
journals and articles so that literature review is written in effective way. In context to this, the
literature review of dissertation is as follows :-
Theme 1 Role of auto mobile industry in GDP
In every country auto mobile sector plays a vital role in contribution of GDP. It is
because it manufactures vehicles that helps in transporting goods from one place to another. In
today's era vehicle has become an integral part of human life. It has become the necessity of
people. According to Gonca and et.al 2015 auto mobile industry is the backbone of nation. It
is because the entire transportation is based on this industry. Also, it empowers other industries'
growth and developing. Besides this, there are many other industries that are dependent on auto
mobile sector such as tyre, glass, steel, etc. So they all together contributes a huge part in GDP of
nation. So if there will be growth in auto mobile sector it will automatically lead to growth of
these industries. As per the view of Öztürk, 2015 every business in dependent on auto mobile
sector. It is because they require transportation to move goods from one place to another. This
creates income for people as well as business. Moreover, auto mobile sector plays a vital role in
GDP of nation. In a research it is said that the contribution of this industry in India GDP is 12% .
There has been significant growth that has lead in rise in GDP. As this industry is related to
manufacturing sector it contributes to a great extent. Thus, in manufacturing half of contribution
is made by auto mobile industry. It also covers a large market share in all over the world. There
are many companies that operates at global level. It includes Volkswagen, Toyota, Ford, etc.
Furthermore, in each country they are having own market share and customer base. There are
many products that are manufactured such as cars, buses, trucks, etc. these all plays a crucial role
in transportation.

As elucidated by Alptekin, 2017 the main sector that is connected with this industry is
transportation. This is the core requirement of business in their operations. Almost all the
business requires an effective transportation to move goods from one place to another. Also, in
daily business operations requires transportation. So trucks and other vehicles are required for
this. In addition to this, transportation also helps people to travel from one place to another. This
helps in generating primary income that is the main source of business. So without transportation
goods cannot be transferred from one industry to market. So if there will be no transportation
than business will not be able to run. It will highly affect their growth and development.
Therefore, the dependency of other business on auto mobile sector makes them as an important
industry for nation.
In the opinion of Ali and et.al 2016 in UK the car manufacturing accounts for 12% in
exports. This is very high as compared to last year. Also, 169000 people are directly employed
with this industry and 814000 indirectly. So this has boosted the GDP of UK. The main countries
in which UK exports cars belongs to EU. This has helped them in generating more revenue
through this. So if this continues for coming years UK economy will be among top 5 countries.
Therefore, UK must work with other countries to ensure global success of auto mobile industry.
As said by Gonca and et.al 2015 in developing countries like India auto mobile industry is
considered as sunrise sector. This is due to increase in demand of two and four wheelers. It is
expected that till 2030 the number of vehicles will be double that the world population. There
has been some drastic change in auto mobile sector in recent times. Now they are focusing on
manufacturing hybrid cars.
According to Fattah and et.al 2014 it has been said that many developing countries are
growing rapidly due to auto mobile companies. They have attracted them to operate in their
country so that it can contribute in GDP. Moreover, due to expansion of this sector, other
companies have entered in the market. It is because auto mobile sector has provided an effective
transport facility to them. With this they are able to operate in the country. No country economy
can grow without auto mobile industry. It has been said by Gonca and et.al 2015 that both
diesel engines and industries are interrelated to each other. Any change in this will affect either
of them. But on the other hand it creates a toxic environment for workers. Also, it creates a
threat for them as they might get affected from air borne disease.

Theme 2 Importance of diesel engines in companies
Diesel engines are being used by companies to a great extent. The engines help them to
manufacture cost effective products. As elucidated by Öztürk, 2015 the benefit of using diesel
engines is durability and reliability. They can operate for long time and helps in reducing the
cost of company. Moreover, it boost power of machinery and is very economic for regular
use. Generally, these engines are used in ocean ships and construction tools. They also provide
support by providing flexibility. This is the main feature of engines that gives a great advantage
to companies. Automobile industry has been using diesel engines from a long time. Basically, its
regular use has increased in need in manufacturing and auto mobile industries. With this they are
producing goods. In railways these engines are used. This mode of transportation effectively
helps in contribution of GDP. It is also used for generating electricity. Many companies still use
these engines. It is because of limited funds and fuel except diesel are costly. So banning of
diesel engines will result in shutdown of many industries such as transportation, automobile,
manufacturing, etc. . In many countries use of these engines are banned because of increasing
pollution. . For example, in agriculture diesel engines are used. When company uses engines they
produce products at low rate. This gives them benefit to increase their profit margin.
As per the views of Sanli and et.al 2015 diesel engines are used in manufacturing
companies such as steel, sugar, etc. They are used in machines that process raw materials into
finished goods. These engines give machines extra power so that more production can be done.
Moreover, it increases the durability of machines so they can work for long time period. The
boosting power of engine is useful for large companies as they have to produce huge number of
goods per day. Another importance of diesel engine is that, it can be used in replacement when
there is power cut or any problem in electric supply. Therefore, it is beneficial for the industry
as it helps in managing interruption in production activities for industries. According to Palash
and et.al 2014 in present times engines are mostly used in LDS and HDV's. It is considered as
effective tool that can be used in almost all type of machinery. Through this they are able to
produce goods. As elucidated by Alptekin, 2017 the usage of diesel engines has increased in
many industries cross the globe. This is because of features of engines. Furthermore, the
flexibility has provided opportunity to industries to allow use of engines in larger area of
production. In developing countries medium size industries are using diesel engines only

because the fuel is economical. It helps in reducing cost of goods produced which helps the
business in managing stability in profit margins. . In addition to this, electricity is not available in
rural areas and therefore owners are forced to make use of Diesel engines. . The second reason
it is increasing cost of electricity. The electricity is used 24 hours in industry it is the major cause
of increasing expenses. In the opinion of Palash and et.al 2014 it is said that some industries
are entirely dependent on diesel engines such as ocean ships and construction.
Theme 3 – Impact of using diesel engine on environment
Diesel engine in which the burning of the fuel which is injected into combustion chamber
is caused by elevated temperature of air in cylinder due to compression. The heat produced by
compression is used to ignite fuel. Diesel engine is the most commonly used for transportation
and generating electricity. Diesel engine includes various types of transportation such as
locomotive, agriculture tractors, on construction sites, mining equipment, electricity generation
plants and also in marine equipment (vessels). As elucidated by Huan, Zhao and Lin, 2018 the
use of diesel increased of diesel engine and therefore is one of the largest contributor
environment changes which are occurring due to air pollution, soil pollution, water pollution.
Harmful emission from the burning of fuel is the main reason of global climatic changes and
greenhouse effects. Diesel engine are refined from crude oil which produces harmful emission
when burnt. Also, diesel vehicles are the main sources of harmful gases and is responsible for
depletion of ozone layer, acid rain and formation of smog in ozone. When a gallon of diesel fuel
is burnt, 22 pounds of carbon dioxide (CO2) is produced which causes global climate change
because the Carbon Dioxide is a greenhouse gas. Exhaust of Diesel engines contain carbon
particles and 40 other harmful chemicals which are classified as “hazardous air pollutants”.
Diesel Exhaust very harmful particles in the environment and these particles are the cause
of serious health issues like respiratory diseases, blockage of airways, etc.. As said by Bennett
and Vijaygopal, 2018, the diesel exhaust contain tiny particles which passes through the nose,
throat and lodge which cause respiratory problems like, bronchitis and asthma. These diesel
emissions contribute to develop the cancer cells in the body which is very serious health concern.
Due to this, the range of lung cancer patient has been increased from 1.2 to 1.5. Although at
present, a survey denoted that the risk of cancer is high which is recorded as 2.6. According to
Environmental Pollution Agency (EPA) fine particles emitted from burning fuel are responsible