France's Market Based Approach To Regulating SUVs

"French drivers who favour large, gas-guzzling cars will have to pay up to €3,500 ($4,300) more for a new model from next January under a radical green road tax scheme unveiled by the environment ministry. Part of a new environment bill aimed at cutting air, water and soil pollution over the next five years, the scheme will also reward drivers who opt for smaller, cleaner vehicles with payouts of up to €700 ($860). This new proposal comes on the heels of another proposal to ban SUVs outright from Paris and other city centers. Supporters of the measure say the large vehicles take up too much space on city streets. With some legal experts saying the ban would be illegal, this new proposal hopes to encourage car buyers to choose smaller, less-polluting cars. 'It's a carrot-and-stick approach that should cost the taxpayer nothing but should make motorists think twice about the kind of car they need, and the kind of car they buy,' an environment ministry spokesman said yesterday."

Thanks to Christian Peralta