3 ms·
Gov subsidies push non trade-able goods prices up. Ebike is closer to global commodity than something like housing or education. French market is not big enough
by dfadsadsf 4y ago
Gov subsidies push non trade-able goods prices up. Ebike is closer to global commodity than something like housing or education. French market is not big enough to move global prices either way. Short term price spike is possible but barrier to entry to import Chinese bikes are low so market will adjust quickly (unless law mandate that you have to buy bicycle made in France)
- sokoloff 4y agoEven if the law merely mandates you buy a bike from a French retailer, I'd expect to see a substantial part of the subsidy captured by the retailer. We see the same here in HVAC upgrade programs. To get the rebate, you have to have a state-licensed installation company do the install. When the rebates are increased, prices go up. When the rebate schemes end, there's a big push at the end of the program to get the install done while the rebates are in effect; once the schemes end, prices drop a bit [still end up higher than with-rebate, but by nothing like the full value of the rebate].