Study Concludes Cash for Clunkers Program Is an Expensive Way to Reduce Carbon; Paying Nearly 10x the Projected Price of Carbon Credits
Green Car Congress
AUGUST 14, 2009
program is paying nearly 10 times the projected price of carbon credits per ton in the best-case scenario, according to an analysis of the implied cost of carbon dioxide reductions under the program by UC Davis transportation economist Christopher Knittel. While carbon credits are projected to sell in the US for about $28 per ton (current price in Europe is about $20), Knittel found that the best-case estimates of the cost of the clunkers rebate is $237 per ton.