Monday, September 24, 2007

Hybrid car promise to cost big-time

The B.C. government has committed to buying hybrids for all its new car purchases. A pious concept, but pricey. The manufacturer's suggested retail price (MSRP) of Toyota's hybrid vehicle, the Prius, is $31,280. The Toyota vehicle most comparative in size, but not a hybrid, is the Corolla, with a MSRP of $15,785. So, the taxpayer is getting hit with almost twice the cost to help the government appear green in the lead up to the next election.

Sure, the B.C. government can take advantage of the federal government's $2,000 subsidy on energy efficient vehicles. However, it could also get the $2,000 on a Toyota Yaris, also not a hybrid, with a MSRP of $14,605, because the Yaris has an acceptable, if somewhat arbitrary, fuel efficiency rating.

This type of knee-jerk policy making points to higher taxes, more waste and less economic growth in B.C.'s future.

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