Arnold added that he hopes that the former actor and bodybuilding champ turned Governor sees the fun in TerraPass’s challenge. “We hope he realizes that this is a humorous attack meant to highlight our cause.”
Schwarzenegger isn’t standing alone in the TerraPass spotlight, however. Leaders such as San Francisco Mayor Gavin Newsom and New York Senator Hillary Clinton are also being targeted. “There are leaders with great environmental records,” Arnold said. “We’re looking to highlight these environmental issues, and want to give some of these leaders a chance to stand with us.”
“We’re looking to create a buzz,” Arnold went on. “We’re trying to do something good for the environment, and we’re trying to have some fun at the same time. We think this is a great way to think carefully about the environment, about how each of us has an impact on the Earth, and what each of us can do about it.”
The Cost
The cost of a TerraPass is based upon the car that it’s purchased for. While a utility/performance vehicle such as an SUV or Schwarzenegger’s Hummers will run a $79.95 price tag, an efficient hybrid vehicle that yields 41 or more miles per gallon of gas costs $29.95. The calculation is made by the amount of carbon dioxide “offset”: a utility/performance vehicle requires 20,000 pounds of carbon dioxide offset, while a fuel-efficient hybrid only requires an offset of 6,000 pounds.
There are also TerraPass offerings for Efficient (29-40 mpg, $39.95) and Standard (19-28 mpg, $49.95) cars.
“Every car – even hybrid ones – have an impact on the environment,” Arnold said. “Pollution is based on the amount of gas you put into a car.”
Each TerraPass package comes with a membership card and several decals and stickers. A car adorned with a TerraPass membership bumper sticker, it is thought, will prevent those (such as Laurie David, wife of Curb Your Enthusiasm’s Larry David) who might look to slap slogan-blaring stickers on low gas mileage vehicles in the name of environmental justice.
Origins
In the Fall of 2004, a graduate-level Systems Analysis and Problem Solving class at the University of Pennsylvania was asked to embark on a somewhat unusual endeavor: form a socially and environmental-conscious company, and make it profitable in a short period of time. The professor, Dr. Karl Ulrich, bequeathed $5,000 in seed money out of his own pockets and set his 41 students out to perform brand and market research.
Dr. Ulrich was convinced that the concept of "carbon credits" – or paying back the environment in equal measure for what is taken away from it – would be a popular one with Americans if it was presented in a way that was easy to understand.








Article comments
1 - mrbenning
Very nice article Eric!
I'm curious, though, about the company's potential to survive. It would definitely sway some guilt, but with it being voluntary I think the novelty might wear off.
Is the cost tax deductible?
2 - Eric Berlin
Thanks very much, mrb.
They do seem to have hit some kind of urge in the American public, likely upscale folk who are guilty about pounding the roads everyday. We'll have to see about long-term viability.
TerraPass is not tax deductible at present. You'd think that it would be a no brainer for some enterprising politician to set up a tax credit for investments/donations into these kinds of companies.
3 - Temple Stark
Tax-deductible would help.
You know what I've always thought would be a contradictary but powerful symbol - a military tank running on biofuel or peanut oil.
4 - Eric Berlin
You're right, Temple -- a tax deduction would be a no brainer, don't you think? It also makes Schwarzenegger -- a moderate Republican Gov a huge, progressive, gas guzzling state -- a very very smart target for this PR move.
Tanks running on peanut oil... I like it. Just doesn't vibe with the whole military-industrial-petro-oil complex thing though, does it?
5 - John Humphrey
Actually, the military is the largest consumer of biodiesel in the country. see this wired article: here
6 - Anonymous
Also, check out carbonfund.org as a tax deductible alternative to Terrapass.