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It is society subsidizing Tesla, because the negative externalities of GM and Fiat customers are both borne by everyone, but the transfer payments in compensati
by reitzensteinm 7y ago
It is society subsidizing Tesla, because the negative externalities of GM and Fiat customers are both borne by everyone, but the transfer payments in compensation are paid to Tesla, not society as a whole.
I'm not saying it's a bad thing, and if we can't get a carbon tax I'll take what I can get. But let's call a spade a spade.
I do think we are missing out in a big way by not tipping the balance of hybrid TCO (eg a Camry) from slightly above to slightly below their equivalent models. Even a small tax could do that and it would make a much bigger difference than EVs have to date (but of course not in the long run).
- shawnz 7y ago> the negative externalities of GM and Fiat customers are both borne by everyone, but the transfer payments in compensation are paid to Tesla, not society as a whole If the transfer payments mean Teslas become cheaper or more available, and therefore more people drive EVs, wouldn't that negate the negative externalities of using petrol vehicles?
- reitzensteinm 7y agoIt just reduces the negative externalities; the result of ZEV credits is a pool of cars, some ICE and some EV, that in total have reduced emissions compared to if all of the cars were ICE. But they still have significant emissions, and society isn't being compensated for them. It's better than doing nothing, but that's about all the praise I'll give it!
- benj111 7y ago"It is society subsidizing Tesla, because the negative externalities of GM and Fiat customers are both borne by everyone" Could you not then argue that Tesla owners are subsidising everyone else by bearing of lowering emissions which benefits everyone else?