Markets in everything, California edition

by on March 27, 2007 at 11:06 am in Economics | Permalink

Californians appear willing to pay $4,000 more for used gasoline-electric hybrid vehicles that have state-issued carpool stickers than for hybrids that don’t.

Here is the full story.

Tony March 27, 2007 at 1:33 pm

Quel surprise. It’s easy to save an hour a day with that sticker. If you’re a high powered lawyer or software consultant earning $100 an hour, of which there are many in the Bay Area, the sticker pays for itself in just two years. So the price sounds just about right.

I’ve long felt it’s a bad idea for the gubbmint to get into the lottery business – whether it’s by rezoning land or issuing magic stickers. All these “windfalls” should be paid for on the open market by the beneficiaries, perhaps in some sort of auction.

DaveW March 27, 2007 at 4:41 pm

It seems odd to me why they wouldn’t make these permits tradeable. If the idea is to encourage use/purchase of more efficient vehicles, this isn’t accomplishing that to the extent it could if the permits could be bought and sold (assuming the would-be purchaser qualified by owning a car that met some standard of fuel efficiency).

Flynn March 28, 2007 at 5:25 am

“It’s easy to save an hour a day with that sticker. If you’re a high powered lawyer or software consultant earning $100 an hour… the sticker pays for itself in just two years”

Interesting math. By my reading of your scenario, it pays for itself in two months. ($100/hr x 1hr/dy x 20dy/mn = $2000/mn)

Are you using some incredible high interest rate? :-)

Mr. Econotarian March 28, 2007 at 5:14 pm

I was preparing to buy a Prius when Virginia said they would no longer let them on the I-95 HOV lanes. No longer!

kyle April 2, 2007 at 9:02 pm

I do not believe that every chevy would last for 379000 miles, and even if a H1 did you can still buy multiple hybrids for the price of one Hummer not to mention the loads of gas money you would save with a hybrid. As far as spending 4000 more for a car with this sticker on it, i believe it would only be for the wealthy people who would be able to make up for the money by getting work quicker.

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