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A study by researchers at UC Davis suggests that a properly designed vehicle scrappage (i.e., Cash for Clunkers”) program could maximize greenhouse gas emissions savings by using fuel-economy based eligibility requirements rather than age-based requirements. Earlier post.). The one exception is the US CARS program.
In the legislation, new car purchases that qualify for this incentive must achieve a minimum of 27 mpg US (8.7 L/100km) on highways, while new trucks must achieve a minimum of 24 mpg (9.8 The legislation also offers transit vouchers in exchange for older, high emission vehicles. L/100km) for highway driving.
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. Our verdict – green shoots should not be ignored.
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