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You have to really consider that in a country like the UK, a lot of people exist that aren't in poverty. I imagine the same is true globally. People don't resp
by esotericn 7y ago
You have to really consider that in a country like the UK, a lot of people exist that aren't in poverty. I imagine the same is true globally.
People don't respond very elastically to small percentage differences in price for something they want unless they're at the margin.
They don't buy the literal cheapest thing available - they buy the thing they want. Zero hour workers might run on Tesco Value digestive biscuits, basic pasta, fruit and veg, etc, but there are tens of millions not in that situation.
If you have your basic needs taken care of and a buffer above that, then an SUV using 25% more fuel or whatever just doesn't really matter from a cost perspective.
https://www.gov.uk/vehicle-tax-rate-tables https://www.gov.uk/vehicle-tax-rate-tables
Want a 250g/km vehicle? Just pay 2 grand a year. Eminently affordable for like, the second most expensive thing most people buy.
If you want this sort of thing to reduce, you need to price it at a level that fewer people can afford to pay.