Cash for Clunkers Update

A little over a week ago, in Cash Clunker, we discussed UC Davis Professor Christopher R. Knittel’s assessment of “The Implied Cost of Carbon Dioxide Under the Cash for Clunkers Program.” As we indicated then, “the analysis suggests that costs per ton of carbon removal exceed $200 – and may even approach $500” – ten to 25 times as much as the current price of carbon offset credits in Europe.

On Tuesday night the program expired, having received $2.877 billion in rebate applications. Yesterday, the National Highway Transportation Safety Administration issued this press release on the Cash for Clunkers wrap-up, emphasizing the economic benefits of the program, and studiously avoiding the questions raised in Professor Knittel’s analysis.

Kansans have applied for $31,496,500 in vouchers under the program. For a complete statistical report on the details of Cash for Clunkers see Car Allowance Rebate System (CARS) final statistics.

Published in: on August 27, 2009 at 2:02 pm  Comments (1)  

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One CommentLeave a comment

  1. John Stossel offers this take on Clunker Legislation.

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