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Because expensive cars are luxury goods with negative externalities.
by ucaetano 9y ago
Because expensive cars are luxury goods with negative externalities.
- khedoros1 9y agoWhich externalities does an expensive car have that a cheap one doesn't?
- ucaetano 9y agoLarger size, larger engine, more natural resources required (and more pollution). Also, not only you need to account for the negative externalities, but you also need to provide a disincentive for purchase, which then needs to be progressive due to the decreasing marginal personal utility.
- khedoros1 9y agoThose aren't aspects of just luxury cars...and they're aspects that I covered in my previous post. > but you also need to provide a disincentive for purchase You need to pay for the externalities. Beyond that, I disagree that you need to disincentivize the purchase.