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User: MB_500E

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  1. Re:This is how economics is supposed to work! on The SUV Is Dethroned · · Score: 1

    Not via regulation or per-category taxes that artificially manipulate, but by consumers adjusting their buying habits as costs change. If SUVs are too expensive to own, people will stop buying them and trade to more fuel-efficient vehicles. Is that really too crazy to ask?

    Also interesting to see whether the trend of people sensing safety while in those large vehicles will continue... Not so easy to go back to sedans while there are so many dangerous SUVs (tanks) out there on the roads, eh?

    --
    Hey code monkey... learn electronics! Economics is not supposed to work. Basically you are right but when parameters such as environmental effects are taken into account you need taxes (and prisons for big company CEOs which cause environmental disasters) to reduce the amount of environmental effects. For the society as a whole it's better to give incentives to car manufacturers to produce environmentally friendlier automobiles than standing by and looking at what happens to be popular right now. Good that SUVs are declining in popularity. For the individual person, taxes on gas is an effective mean of forcing people to use "better" cars and drive smarter. For myself, I have a V8 Mercedes but it's not used as a daily driver so its environmental effects are quite low.