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...flex-fuel credit that allows carmakers to build more gas guzzlers than the regulation might otherwise allow, provided the vehicles can run on E85, a mixture that is 85% ethanol and 15% gasoline. The problem is that only about 1% of the gas stations in the U.S. now sell E85 and the number isn't expected to increase much anytime soon. The flex-fuel credit trims the m.p.g. target for manufacturers selling flex-fuel-capable vehicles by 1.2 m.p.g...
...Another perceived soft spot in the White House proposal: carmakers will get carbon credits for selling their most efficient vehicles into California and other states that had adopted separate standards before the Obama Administration moved to harmonize an expanding patchwork of state and federal rules. The proposed solution results in an arrangement whereby carmakers who had been prepared to meet California's tough impending state rules (just to be able to sell in California) will now earn bonus credits for doing just that. "The concern is carmakers will be getting extra credits for what they would have done anyway," says...
Insurers are trying. Munich Re is piloting flood insurance in Jakarta; Swiss Re is peddling health policies in Pakistan; Zurich Re is trying out disability coverage in China. The trickiest part, says Brandon Mathews, who heads Zurich's developing-markets business, isn't figuring out what to sell but rather connecting with customers. Some of his team's more creative ideas: sell unemployment insurance in Brazil on people's utility bills and push personal accident policies in Bolivia via scratch cards sold at newsstands...
There is also a much more basic explanation for why insurance doesn't sell. Insurance has proved its worth for centuries, but people still resist it. They don't like thinking about the possibility of bad things happening. That's why car insurance is mandatory--and health insurance may soon be. If supposedly financially sophisticated Americans have to be coerced to buy insurance, should we really expect people in less rich countries to be any different...
Progress also has a plan to sell synthetic gypsum, a by-product of its newly installed pollution-reducing stack scrubbers, to a plant that was scheduled to be built this year by wallboard maker CertainTeed. Gypsum is a critical component of wallboard, which is a critical component of housing construction. You know where that story goes. Because construction has collapsed, CertainTeed has postponed the wallboard plant until...