Case 278 - The Race to Produce the World's Cleanest Car: Public Policy Issues
by ISD - Georgetown University
Letovsky, RobertThis case study examines the U.S. government’s Partnership for a New Generation of Vehicles, an initiative aimed at bringing American automakers together to produce a high-efficiency vehicle by 2004. The case presents various models of industrial policy, then describes the technological, economic, and legislative issues facing both policymakers and the auto firms as they addressed the issue of how to close the gap with Japanese firms. Issues such as who should be the beneficiaries of public policy efforts, and how far policy should go in leading a market, are raised in the case.