There is an inherent public policy tension between encouraging vehicles
which are safer for occupants, wasteful of gasoline and air quality, and
less safe for non-occupants (SUVs) and the opposite type compact cars.
However, it seems to me that if the public desires the SUV enough to pay
the price for the vehicle and any net increased insurance cost, it should
be allowed to do so in a market economy. As long as all costs are
accurately allocated by the market (or by government if that is impossible)
then the mix of vehicles on the road should be consumer determined.
It is possible that some standards for the manufacture of such vehicles
could reduce the overall damage level. For instance, bumper height
disparities appear to be the cause for much of the property damage
inflicted by the SUVs. If more attention is paid to this issue by design
engineers, because of a future federal standard on this issue, the overall
damage level could decline. This would be a clear public policy plus.
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