In his recent State of the Union address, President Barack Obama proposed several lofty policy goals for our nation to undertake.
This approach to the annual address is nothing new; however, while some of our country’s issues can be substantially dealt with through the political process, our nation’s energy future seems to rest more in the hands of automobile makers and the American consumer than in the realm of public policy.
Political proposals can help direct public debate or prompt Congress to get the ball rolling on a particular policy issue, but it’s extraordinarily more difficult to actually direct the American people to change their habits.
Our energy needs have become increasingly entrenched over the course of American history. As a result, trying to change our consumption habits, especially at the gas pump, is exceptionally difficult. That is not to say that presidents haven’t tried. Many policy goals have been put forward to curtail our country’s energy and gasoline use. These include a proposal made in Obama’s address to have 80 percent of our energy consumption come from clean sources by 2035. Such goals cannot be reached without the help of American car buyers and makers. This doesn’t mean people should immediately ditch their old cars and rapidly flock to their nearest car dealer to purchase a hybrid vehicle, though.
As gas prices reach levels not seen in years, no significant change seems to be happening in the minds of U.S. car buyers. Sales of hybrid vehicles fell last year, while truck and SUV sales increased. Of course, a truck or SUV sold today is not the same kind sold 10 years ago. Tighter efficiency standards have made SUVs and trucks more energy-efficient. They also carry a different appeal than the typical passenger car. People needing to haul materials for personal or business needs undoubtedly buy trucks and SUVs over four-door family sedans. Unfortunately, though, the reason for the decrease in hybrid sales is not as easy to pinpoint. Many hybrid vehicles have actually lost the unattractive shape that plagued their sales for years, and higher gas prices should increase their allure. The price, however, of a hybrid car is probably the biggest factor contributing to their lag in sales.
For example, the Chevy Volt costs around $41,000, and the Nissan Leaf costs about $33,000. With such high prices, most hybrids are bought by wealthier customers. The government offers tax rebates for the purchase of such cars, but tax incentives can’t trump the overall price tag. This certainly is a part of the root of our ever-growing energy problem. It’s apparent that our energy issues cannot be curbed by one single switch or a single policy goal set by the president. We can curb our energy problems with a cluster of policy initiatives and a shift in the mindsets of auto makers and American consumers.