The cash for clunkers program, which was supposed to boost short term vehicle sales and reduce carbon emissions, ended up costing more than it was worth, an Oct. 30 Brookings report says.
The $2.85 billion Car Allowance Rebate System, known as cash for clunkers, provided economic incentives to people who bought new, more fuel-efficient vehicles when they traded in their less fuel-efficient vehicles. The program was offered July 1 to Aug. 24, 2009.
The program led to a slight improvement in fuel economy and some reduction in carbon emissions, the report says. But the cost per ton of carbon dioxide reduced from the program suggests that the program was not a cost-effective way to reduce emissions.
Read more: Cash for clunkers programs yielded little environmental impact - FierceGovernment fiercegovernment.com/story/cash-clunkers-programs-yielded-little-environmental-impact/2013-11-04#ixzz2jiDCYpDa
Interesting, it also didn’t create that many jobs. One thing that did happen was that good used cars were removed from the market, meaning that people ended up having to buy new and pay more money. Especially obvious when you see that the most common “trade-in” was a pick-up truck, that folks running small businesses could have found very useful.