Deathrattle of the Humvee

Today - some good news! GM have stated they are considering closing down the production of Humvees at their Detroit plant. Environmentalists around the world celebrate!
One truth about the market solving the issue of fuel efficiency has been proved true - the more fule your vehicle requires the more expensive therefore a vehicle with poor fuel efficiency gets disproportionately more expensive. Hence the move towards hybrids and diesels with their improved efficiency.
Is this the new mode of environmentalism for the current recession we're in, buy less and buy small. As a model it has many winning ideas.

1. In times of economic hardship, luxury items are less of a priority. Many luxury items, new cars, flights etc are expensive and consequently are less bought.

2. Even on neccessity such as fuel for transport and heating, money saving schemes, promoted by market opportunity can become more enticing. A car which uses half the fuel of its rivals and halving housing bills by adding insulation look much better when petrol and as prices rise and rise and don't look like stopping.

3. Recession is an inherently negative word with all sorts of ill omens. A consequence of this may be a little soul-searching possibly culmimating in a modified system of values. Perhaps even an ecologial perspective may emerge from this? Or failing that just a bit of optimism about the climate crisis, such as the possible mass expansion of renewables and recycling.

4. The main players in the market have the most to lose so it would be wise for them to take pre-emptive action, engage with government and NGO's and create a viable carbon trading scheme. This scheme must be feasable for all involved and must include mandatory emissions reduction targets and binding regulations for everyone, thus lvelling the playing field.

Yet a market based approach to Environmentalism can be criticised in many ways too.

1. Markets are mechanisms designed to increase profits. Therefore the environment is not prioritised. Only with mandatory emissions reductions can markets be 'greened'.

2. Markets thrive on scarcity, therefore meaning that despite high fuel prices and constantly expanding global emissions the share prices are always rising.

3. Only a tiny percentage (less than 1%) is about sustainable and ethical investments.

4. Steady state economics - the favoured system of environmentalists - is a bitter pill to swallow for the growth orientated economists in the Treasury and Stock Exchnage.

But, here's some simple economics that all should be able to understand.
Nicholas Stern said that its either a 1% yearly investment now or a 20% (minimum estimate) decrease in economic output on a national level. Spending 1 pence now to save 20 pence later. Sound like a good idea?