STUDY: Cash For Clunkers not exactly a bargain, emissions reduction costs 10x more than carbon credits
The Cash For Clunkers (C.A.R.S.) program has been a big success. No question there. But one of the stated reasons for the program is to reduce emissions. Getting low-mpg vehicles off the road in favor of ones that are more fuel efficient is a good idea, but a new report by UC Davis says that the cost to reduce CO2 via C.A.R.S. is about ten times as high as it would be to lower them using carbon credits. The university calculated that a credit for a ton of CO2 in the U.S. would cost about $28/ton (in Europe, the price is closer to $20/ton), whereas the “best-case calculation” of the cost of the clunkers rebate is $237 per ton of CO2. The “more likely” scenario puts the cost to eliminate a ton of CO2 using C.A.R.S. was over $500. UC Davis transportation economist Christopher Knittel, who authored the study, said he didn’t factor in any of C.A.R.S.’s economic benefits; it just tried to calculate the cost of the CO2. You can download his paper, titled “The Implied Cost of Carbon Dioxide Under the Cash for Clunkers Program,” here (PDF).
[Source: UC Davis]
STUDY: Cash For Clunkers not exactly a bargain, emissions reduction costs 10x more than carbon credits originally appeared on Autoblog Green on Sun, 16 Aug 2009 18:24:00 EST. Please see our terms for use of feeds.