Green cars aren't cheaper, but people that choose the color green also choose cheaper cars on average when compared to people that buy any other color.
Not necessarily. If you say "I will only buy a car that's green," and money is no object, you are likely to spend less money than if you buy a car of any other color. However, if you want a 2009 Honda Civic, a green one may not necessarily be cheaper than a blue or black one.
My theory is that there aren't many green luxury cars out there (think black!), but plenty of cheap commuter cars that are green. Another theory: younger people want green and younger people happen to spend a lot less on cars on average.
I went looking through the categories and the only time green is not the cheapest is when it's a station wagon. In that case, red is cheaper than green, but not by much.