Common Tragedies

Thoughts on Environmental Economics

Counterintuitive economics result of the day

Posted by Daniel Hall on June 16, 2008

Payback For Many Hybrids Grows As Gas Costs Rise:

Higher demand has stiffened sales prices for hybrids and other cars and crossover SUVs with decent fuel economy while dealers and manufacturers are discounting less-efficient conventional gasoline models to try to move them off the lots.

That boosts the difference between the retail price of a hybrid and the equivalent gasoline model in a manufacturer’s lineup, and makes it harder for the hybrid to earn back its price premium from fuel savings alone.

The pointer is from the new RFF Library Blog, a great resource for new studies and reports, particularly from government sources.

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One Response to “Counterintuitive economics result of the day”

  1. Larry Sheldon said

    Interesting, isn’t it, how often “unanticipated consequences” comes up in Central Planning exercise postmortems?

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