Where Economics Stalls Even the Coolest Hybrid Car Markets

Monday, April 26, 2010 11:03
Posted in category Uncategorized

One of the argument that I continue to make about the entire sustainability debate, is that if it were really a goal of ours to promote sustainability, then the economic argument would become mute. That, instead of keeping coal fired energy prices artificially low, the price would be allowed to rise in a manner that more accurately reflected its TRUE cost.

Another case being hybrid and electric cars, which have been all the hype lately, but as the recent Business Week article China Drivers Shun Hybrids, Electric Cars on Lack of Subsidy highlights, economic gravity is clearly still puling in the wrong direction.

Never mind the fact that China is now importing more than 50% of its oil, or that combustion engines are driving air pollution readings further up, the incentives to purchase these cars simply are not there yet.

“Some of the hybrids and electric cars look pretty cool, but they are too expensive,” said Huang, 51, who opted for a General Motors Co. Cruze. “I’d rather spend less money on a reliable gasoline car.”

That while there are promises of subsidies and incentives for hybrid/ EV cars, the fact is that the subsidies for traditional cars are still larger. A situation that is likely going to only make the automakers case that green isn’t green enough for them to continue investing more.

… and that isn’t good for anyone long term.

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One Response to “Where Economics Stalls Even the Coolest Hybrid Car Markets”

  1. Etienne C says:

    April 28th, 2010 at 6:02 am

    I Rich,
    Interestingly enough, I just saw an article about BYD diversifying beyond EV toward energy-efficiency products for home owners. I wonder whether there is any link between this strategic move and the trend you describe.
    You can read the article on http://green.venturebeat.com/2010/04/26/byd-looks-beyond-evs-to-home-energy-management/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Venturebeat_green+%28VentureBeat+%C2%BB+GreenBeat%29
    (Sorry, I do not know how to make this shorter)

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