The recent Volkswagen scandal once more draws attention to the importance of environmental regulation. The strong reaction from the American judiciary and the financial markets, but also from the general public including VW drivers seems to indicate that the valuations of environmental quality (and legal compliance) are by far higher to the implied individual “costs” such as higher maintenance or fuel costs. This is despite the high number of half a million vehicle owners affected in the U.S. and the claimed benefits of cheating customers.
