The price is right? The limitations of market mechanisms in encouraging low carbon mobility
AbstractThe automotive industry must embrace a low carbon mobility future. One way to encourage this is via incentives for consumers to use their existing vehicles more efficiently, and to purchase vehicles with technologies that mean they produce lower CO2 emissions. The conventional wisdom holds that market mechanisms, which alter the price signals faced by consumers, should be crucial in changing consumer behaviour and stimulating demand for such vehicles. However, this article cautions against the degree to which market mechanisms may be relied on. Because of the price inelasticity of demand for fuel, the endurance of national and regional preferences that are resistant to market price signals for the uptake of new vehicles, and supply-side considerations, a more interventionist policy response will be necessary for driving, rather than stimulating, demand for vehicles with lower CO2 emissions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by London South Bank University in its journal Local Economy: The Journal of the Local Economy Policy Unit.
Volume (Year): 27 (2012)
Issue (Month): 7 (November)
Contact details of provider:
Web page: http://www.lsbu.ac.uk/index.shtml
automotive industry; CO2 emissions; environmental externalities; market failure; market mechanisms; new technologies;
Find related papers by JEL classification:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications).
If references are entirely missing, you can add them using this form.