ASU research finds that Cash for Clunkers rebates were too high to prompt car upgrades

Green Car Congress

In 2009, the Obama administration launched the Car Allowance Rebate System, a program that was intended to not only stimulate spending, but also to improve energy efficiency and safety by encouraging people to upgrade to new cars. The Car Allowance Rebate System, which cost the government $3 billion and was dubbed “Cash for Clunkers,” was so popular that it ran for only a few weeks in the summer before running out of money.