Creating Sustainable Values by Bundling: The Prospect of Climate Change Solutions for the Automobile Industry

Frank Lorne () and Mostafa Purmehdi
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Frank Lorne: School of Management, New York Institute of Technology, Vancouver, BC V5M 4X5, Canada
Mostafa Purmehdi: School of Management, New York Institute of Technology, Vancouver, BC V5M 4X5, Canada

Sustainability, 2025, vol. 17, issue 10, 1-12

Abstract: This paper suggests a method of private internalization of externalities via the bundling of new fossil fuel automobile purchases. The bundle encourages and pursues a new quality of life entailing planting trees, a healthy body and mind, and efficient use of new energy usages for the joining of a grassroots environmental club. The work was motivated by the classic economics article by Ronald Coase, The Problem of Social Cost (1960). Marketing plays an important role in this internalization endeavor. Indeed, modern behavioral economics and psychology help inform how creative bundles of a new automobile purchase with sustainable lifestyle elements can effectively formulate some promotional propositions. The pragmatism we are demonstrating in this piece is to show the linkage between theories and marketable directions that can be experimented with via trial-and-error, as in many bundling exercises.

Keywords: Pigouvian tax; augmented product; CO 2 accounting; voluntary payments (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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