The federal government’s Cash for Clunkers aims to stimulate the economy, provide relief for automobile manufacturers and reduce greenhouse gas emissions. However, the 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. Conservative estimates resulted in an implied carbon cost exceeding $365 per ton, and more likely scenarios produced a cost of more than $500 per ton.
LOOKS LIKE IT COST MORE TO GET RID OF THESE CARS THAN IT IS SAVING IN CARBON EMISSIONS TO THE ENVIRONMENT. ANOTHER 'SOMETHING FOR NOTHING' PROGRAM THAT DID NOT DUE WHAT IT WAS SOLD TO US IT WOULD DO.
MY CASH FOR CLUNKER STORY:
I SOLD TO A YOUNG MAN AN OLDER VEHICLE I DID NOT NEED. THIS YOUNG MAN USES VAN FOR CHARITABLE WORK. HE MADE THE DECISION OF WHICH VEHICLE AND PRICE HE WANTED TO PAY, I GOT RID OF AN UNWANTED VAN. THE FREE MARKET RULES....