Has the cash for clunkers scheme failed? The Green Piece

Green Cars News

The Car Allowance Rebate System (CARS for short, or ‘cash for clunkers’ as it is more commonly known) was the US’s answer to the scrappage schemes in Germany and the UK which appeared to have revitalised their respective automotive sectors. Though the scheme proved so popular that the initial $1billion set aside for it ran out last month, auto sales only rose by 2.4 When the cash for clunkers scheme was introduced, we at TheGreenCarWebsite.co.uk

Proposed scrappage scheme meets criticism

Green Cars News

The scrappage scheme is only a few days old here in the UK and it has already come under fire. An article in the New York Times criticised the so-called “cash for clunkers&# legislation that would give people vouchers worth as much as $4,500 to replace old cars with new ones. By contrast it states, the Congress scheme is weaker - you can simply buy a new SUV with only slightly better gas mileage and qualify for a $3,500 boost.

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UK Scrappage Scheme Encouraging Shift to Smaller, Fuel-Efficient Cars

Green Car Congress

New cars bought through the UK’s scrappage incentive scheme , which began in May, emit on average 10.9% Scrappage buyers were also three times more likely than average to buy the smallest class of car—minis such as the Smart Fortwo—and a third more cars bought through the scheme were larger superminis such as the Hyundai i10. The UK’s scrappage scheme provides £2,000 (US$3,300) to qualifying buyers. Guardian.

Study finds that replacement programs that reduce vehicle lifetime can result in increased lifecycle CO2 emissions

Green Car Congress

Vehicle replacement schemes such as the “cash for clunkers” program in the US and the “scrappage scheme” in the UK have featured prominently in the economic stimulation packages initiated by many governments to cope with the global economic crisis—at least 13 countries have deployed such schemes. Extending vehicle life reduces the number of new vehicles sold, with an associated decrease in energy consumed for vehicle production.

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