Regulating emissions: Should ads for large polluting vehicles be banned?

Environmentalists are arguing that the government should ban adverts for large cars, such as SUVs, because every car sold makes it less likely that the UK will meet its climate change commitments.

The car industry argues that the current generation of SUVs is more efficient than before, but others, notably local government have concerns about the growing size of cars. However, will such a policy be effective: does the average SUV buyer really heed advertising?

It is an interesting example of an issue where regulatory intervention can be applied to externalities and resulting market failure. Which government policies are likely to be most effective and/or equitable?

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