Motivating Public Compliance

The proposed solution to the problem of motivating the public to comply voluntarily with the suggestion to transition to high-mileage passenger vehicles will rely primarily on economic incentives in the form of subsidized purchases and tax credits. The success of the 2008 "Cash for Clunkers" program already demonstrated the potential effectiveness of this approach to motivating compliance with the effort to replace inefficient older vehicle with more efficient newer vehicles.

Five Anticipate Implementation Problems

There are many more vehicles available on the market than those rated above 30 MPG. Consumers who currently drive vehicles for which no 30+ MPG alternative is available will be reluctant to change the type of vehicle they drive just to comply with the voluntary policy.

Motor vehicle manufacturers have not developed as much variety of 30+ MPG vehicles as they have other vehicles in their lines and may be reluctant to do so because it could decrease their competitive position.

3. The current economic recession is not particularly conducive to new vehicle purchases by consumers.

4. Because of the current economic recession, financial lending institutions are now much stricter than before; consequently, many consumers who might want to comply with the policy will not be able to secure financing for the purchase.

5. Many popular models of vehicles (i.e. large SUVs and trucks) are difficult to produce with high-mileage capability.

Possible Solutions to Anticipated Implementation Problems

1. Subsidizing consumer purchases with cash rebate incentives and tax credits would probably increase voluntary compliance substantially.

2. Subsidizing vehicle manufacturers for the research and development costs associated with producing more high-mileage vehicles could decrease their reluctance to do so independently.

3. Sufficient purchase subsidies and tax credits issued directly to consumers by the federal government could substantially increase their willingness to make purchases of newer more efficient vehicles.

4. Federal guarantees issued to financial lending institutions in connection with eligible loans to consumers for the purchase of high-mileage vehicles could reduce the difficulty that many consumers are currently experiencing when applying for financial loans.

5. Public relations campaigns to encourage a shift to higher-mileage vehicle models and financial incentives could be a "carrot" to promote voluntary compliance. Likewise, a "non-necessity" tax applicable to owners of large SUVs and trucks without a legitimate need (such as a business need) could provide a corresponding "stick" to discourage the unnecessary purchase of vehicles that do not achieve the minimum MPG that the government hopes to impose.