I've been silently fuming over the
Cash for Clunkers program since it went live last week. According to the rules, the program contributes a $3500 or $4500 credit towards the trade-in of an inefficient "clunker" (defined as a vehicle < 25 years old that gets < 18mpg) for the purchase of a new "fuel efficient" vehicle. The rules define "fuel
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For a given trip distance, upgrading a truck from 16 to 18 mpg saves more fuel than upgrading a car from 25 to 30 mpg.
(And 16 -> 18.5 mpg saves more fuel than 30 -> 40 mpg.)
(A zero mpg savings is of course a wash no matter how you measure it. And the incentives of the program are certainly all messed up...)
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Was spending $1 billion a particularly cost-effective way to achieve those CO2 reductions? Probably not. Assuming the above calculations are correct and that each consumer keeps his or her car for 10 years, then the total savings should be a little less than 5.7 million tons of carbon dioxide. That means each ton of carbon dioxide would be worth about $175.53 to the U.S. government. As the Washington Policy ( ... )
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