Topics: Insights, Economics, Automobiles, Environment, Incentives
This evening, I listened to interesting report on NPR's AllThings Considered on "Access to Calif. HOV Lane Puts Premium on Hybrids". To encourage the purchase of hybrid automobiles, California had offered special stickers that allowed the hybrids' drivers to use the HOV (high occupancy vehicle, carpool) lanes even if there was only the driver in the vehicle. California has handed out all 85,000 of these special sticker and no more are available. Therefore, hybrids, such as Toyota's Prius, with the stickers are in a limited supply. The only way to get the stickers is to buy them with a hybrid automobile.
The economic results are interesting. A study of automobile resale prices has learned that the sticker has increased the average resale price by $4,000 (£2,000) compared to the same type of vehicle without the sticker. This is the largest return on any single improvement to a vehicle. The All Things Considered programme explains the economics of the stickers and why the time savings in the commutes may make the price difference worth it to the buyers.
Oh, with a valuable item, there are those would seek to steal it, but the stickers have anti-theft features that make it difficult to remove and reuse the stickers. They crumble or produce a "VOID" marking.
J.D. Abolins