Friday, July 17, 2020

A missing link in green car marketing

One of the reasons why automakers have advocated weaker fuel economy and greenhouse gas (GHG) emission standards is that lower-than-expected fuel prices have lessened consumer interest in higher fuel economy. Although insufficient consumer interest relative to environmental need is the main reason why regulations are needed, lack of consumer interest is a legitimate concern. The challenge is quite real when the market is pulling one way while regulations are pulling another.

Nevertheless, environmental need -- and indeed policy-fostering public sentiment to address global warming -- does not go down when pump prices fall.