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.

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?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: