By Arnold Kling
Discussing a forthcoming study of air pollution by Joel Schwartz, Ronald Bailey writes,
For example, [Schwartz argues that] a proposal to raise the prices of conventional cars and use the extra money to lower the prices of electric cars—which are estimated to cost $17,000 more than conventional cars—would be counterproductive. Since new conventional cars will be virtually pollution-free soon, raising their prices will have the perverse effect of encouraging drivers to hold on to their older, more polluting, jalopies longer, thus increasing overall emissions.
For Discussion. What are some more efficient ways to regulate automobile air pollution in the context of ongoing technical change?