CARPE DIEM
Professor Mark J. Perry's Blog for Economics and Finance
Wednesday, March 07, 2012
About Me
- Name: Mark J. Perry
- Location: Washington, D.C., United States
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
Previous Posts
- Commercial Natural Gas Falls to 9-Year Low in Dec.
- Shale Gale: Energy Equivalent of Berlin Wall Falling
- New Manufacturing Math Starts to Favor the U.S.
- Cartoon of the Day
- Companies Leaving California in Record Numbers
- The Educational Octopus
- A Classic Milton Friedman Essay on Health Care
- Transitions
- College Degrees By Gender Remain Remarkably Stable...
- Interesting Facts: Online Job Demand
10 Comments:
a tried and true strategy.
"when you are running down the street with your hair on fire, people will get out of your way."
-richard pryor
if a breakthrough occurred and the Volt sold for 19,999 ... what would happen?
I'm not saying it will happen anytime soon but I'm pointing out that the issue is not really about "green" but for most consumers.. about money.
If your oil furnace dies these days...what do you do?
do you go out and buy another oil furnace or do you get a heat pump or a nat gas furnace?
people change.
they'll adopt energy efficient products - if they save money.
they'll adopt energy efficient products - if they save money.
Exactly right. Now you're thinking like a free marketer!
This is a tax credit for the top 20% (at a minimum) more likely the top 10%.
Every time gas spikes, and people want to produce more, we are told "There is no silver bullet" or "More domestic exploration won't bring energy to the market for 10 years"
WELL IT'S BEEN 10 YEARS
Like it or not we are stuck with petroleum products. The Europeans drive around in little fuel efficient diesels. It can be done with petroleum based engines in the consumer fleet. Wishing that cars ran on unicorn tears and fairy dust won't make it happen.
Itchy pointed out a common statement used by radical environmentalists to discourage domestic production of U.S. energy:
"More domestic exploration won't bring energy to the market for 10 years"
If the people in ND had listened to this type of garbage and believed it, ND wouldn't be the 3rd largest oil producing state in the country.
If I'm going to spend $42k on a car, it won't be for a government motors car that has a battery with a limited life expectancy. For $42k I'd buy an Audi.
For $42k I would buy two Toyota's, ha e a new car twice as often, and have change left over.
Ditto on the LOL.
Can we get a Volt in a NASCAR race? Everyone watches for the big car-on-fire wrecks anyway.
The problem with the Chevy Volt is that the developmental costs are spread across too few units making the consumer price too expensive even with taxpayer subsidies. The Volt really needs to be in $20,000 to $25,000 range to sell very many of them. A lot of the jokes that are being made today about electric cars were made by horse and buggy owners when the automobile was first introduced to the public. New technology is strange. New technology is expensive.
General Motors already subsidizes the Chevy Corvette from other GM platforms to make it more affordable. GM cannot cost justify the Corvette using accepted brand management costing methods. GM keeps the Corvette to keep the image and mystique of Chevrolet power alive. The real unit cost of a base Corvette to make a profit is over $100,000 because of the low volume. I wonder why GM doesn’t subsidize the Volt to brand GM as the technology leader in the field. For now, I think I will buy the Volt’s gasoline brother: the Chevy Cruze.
Funny video, but it's too close to home for me. As a GM employee, I wasn't excited about the company receiving assistance from the government and still don't like it. Big black eye in my opinion, but I at least understand part of the reasoning.
As for the Volt, it's a good car but is clearly a niche car. Not for everyone. There are as many positive websites, blogs, and videos about this car as there are negative ones. Free speech lives on.
What is the justification for a 650 HP lexus Hybrid, or the new Porsche that turns zero to 100 in 4 seconds?
Or how about the justification for $3000 Extra to add an 18 gallon CNG tank to your new Silverado, which also has a 36 gallon Gas tank?
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