The chapter notes the U.S. federal government has provided incentives for consumers to purchase electric vehicles (EVs). Some state governments are also providing additional purchase incentives. However, other countries are also encouraging the purchase of EVs. Norway counts over 30 percent of its newly registered vehicles in the first quarter of 2015 as electric vehicles (compared to less than 1 percent for U.S. registrations). Norway waives a substantial automobile import tax on EVs sold inside the country.

a. What is the appropriate role for governments to encourage or discourage certain purchasing behaviors? You may note many national governments have for decades collected additional taxes on tobacco and alcohol products as a measure to try to moderate consumption of these items.

b. As a strategist in a major firm, how would you seek to position your company in light of such current and potential future governmental policies?