Episode 5: Corporate Conspiracies

Economic Incentives

The economic incentives surrounding electric cars and oil companies are complex yet revealing. James Fodor explains that electric car companies are willing to pay up to the total value of the extra profits they expect from selling electric cars, which is equivalent to the savings consumers would make on fuel costs 1. This amount is also equal to the revenue loss faced by the oil industry due to reduced gasoline sales. Fodor notes that the oil industry, being competitive, would benefit from selling patents to electric car companies rather than suppressing them 1.

The oil company will lose a certain amount of gasoline revenues as a result of reduced demand. But that would be exactly equal to the amount that consumers would save on gasoline.

--- James Fodor

Additionally, the intrinsic advantages of electric cars, such as smoother rides and environmental benefits, make them more competitive, further diminishing the likelihood of conspiracies to suppress them 2.

   

Feasibility Challenges

The feasibility of suppressing electric cars by oil companies faces significant challenges. James Fodor argues that any firm producing a cost-competitive electric vehicle would quickly dominate the market, reducing oil demand and revenues 3. Despite conspiracy theories suggesting oil companies buy patents to stifle electric car development, Fodor highlights the impracticality of such actions due to the competitive nature of the market and the potential for alternative technologies to emerge 3.

It's that they actually do something to eliminate them or to suppress them. Usually the argument is that they purchase up the patents required for the batteries or something like that.

--- James Fodor

Moreover, many major oil companies are investing in renewable energies, indicating a strategic shift rather than suppression 2.