What are the Economics of a Hybrid car?

Question

This always comes to mind. If you can buy a car for $20K that gets around 35 miles per gallon, and you can buy a car for $30K that gets 40 miles per gallon, are you really doing the environment a favor? Basically, you have to drive back and forth to work to earn an extra $10K to buy that Hybrid? You have to earn at least 33% more to save 12%.

Answer 1

Branding and product marketing. You are selling someone the satisfaction that they think they are doing all that for their environment. (Who am I to know if they are or not.) By your numbers they are paying 21% a green satisfaction fee.