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The economics of the vehicle industry are whatever governments and their backers want to make them.
eg tax breaks for teh Hummer. road building, import quotas & restrictions. research and military funding ... Media coverage and advertising are also linked into the skewing of the "free" market.

Then don't account for use of commons, eg distruction of habitat, increase in injury severity, pollution from well to wheel, use of non-renewable resource ...

for a good report on how this all works see film who killed the electric car.

2006-07-11 02:46:35 · answer #1 · answered by fred 6 · 0 0

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