Counterintuitive economics result of the day
Posted by Daniel Hall on June 16, 2008
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.