Subsidized Car Sharing: The Next Frontier in Wasteful Spending

Nine months ago I happily testified (twice) on behalf of a legislative bill that would allow the creation of a privately operated car sharing program in Oregon. I liked the idea of using cars more efficiently, and I loved the fact that the price of rentals would be determined entirely by the market.

A model for this program exists in San Francisco; and as one of the legislative proponents described it, private vehicles there rent for about $9 per hour. But a Tesla electric vehicle frequently rents for $50 an hour, just because some people think it’s fun to drive.

I wouldn’t pay that much, but I’m glad the law allows someone else to.

Unfortunately, a good idea has been ruined by subsidies. Recently, the federal government awarded a $1.7 million grant (requiring $431,250 in local match money) to the City of Portland to promote car sharing and to measure the results. The regional government, Metro, will vote on Thursday to accept the grant.

Car sharing is a great idea, but tax sharing is not. Metro Councilors should reject the federal money and allow the “invisible hand” of the market to work exactly as the legislature intended.


John A. Charles, Jr. is President and CEO of Cascade Policy Institute, Oregon’s free market public policy research organization.

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Posted by at 04:30 | Posted in Economy, Government Regulation, Individual Responsiblity, Metro, OR 76th Legislative Session, Oregon Government, Oregon House, Oregon Senate, Portland Politics, Taxes, Transportation | Tagged , , , | 251 Comments |Email This Post Email This Post |Print This Post Print This Post

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