Armstrong Economics Blog/Nature
Re-Posted Aug 6, 2017 by Martin Armstrong
COMMENT: Just to give you the heads up on diesels (Source my brother in the Industry). During the 70’s when Japanese were dominating car imports in Europe. France came up with the idea of giving preferential treatment to diesel cars as the French Car Industry was ahead of the Japanese in diesel engines. (the pollution of Tokyo has meant that diesels were dismissed for cars). The fuel efficiency of diesels was well known as was the particulate problem and the need for better maintenance to maintain emissions. France lowered the tax on diesel fuel to make French cars attractive and competitive. France then lobbied the EU to keep the emissions tests stationary in the lab rather than on the road to hide the particulate problem. This has resulted effectually in much better small diesels but still the particulate problem remains. This could have been helped in cities by moving to LPG for buses and taxis but that never happened presumable for safety reasons. BTW if everyone plugs in a car overnight to charge up what is now provided by liquid fuel we need a seriously new and different electricity system.
REPLY: Your are correct. There has been a significant tax advantage to a diesel in Europe which was to compete against the Japanese.