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Study Finds Government Mandates Superior to All Other Biofuels Policies, But Mixing With Subsidies Causes Adverse Effects; The Argument for a Direct CO2 Tax

Green Car Congress

While a mandate can potentially increase social welfare substantially, a consumption subsidy likely decreases welfare significantly, primarily because of the taxpayer burden but also because it encourages negative externalities related to vehicle miles traveled, local air pollution and CO 2 emissions.

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How the Budget affects green car drivers

Green Cars News

On one hand, the scrappage scheme should encourage drivers to take up more fuel efficient cars - although as the Environmental Transport Association pointed out earlier this week (see our article here ), driving new and greener cars will not necessarily surpass the environmental impact of disposing of older vehicles.