Economics at your fingertips  

An assessment of two environmental and economic benefits of ‘Cash for Clunkers’

Shoshannah M. Lenski, Gregory A. Keoleian and Michael R. Moore

Ecological Economics, 2013, vol. 96, issue C, 173-180

Abstract: This research aims to provide a more comprehensive, life cycle accounting of two categories of environmental and economic benefits associated with the $3billion US “Cash for Clunkers” vehicle scrappage program. First, using a life cycle emissions methodology developed in Lenski et al. (2010), we find that about 29,000metric tons of criteria pollutant emissions were avoided, for a benefit of about $23million; avoided carbon dioxide emissions, by comparison, provided a benefit worth $90million. Second, we compare the market value of scrapped vehicles to the rebates provided, calculating the consumer surplus or “gift” to participants to be up to $2billion (about $2000 to $3000 per vehicle). This is significantly more than offered in previous vehicle scrappage programs, and suggests opportunities to get more environmental and economic “bang for the buck.” Finally, these two categories of benefits are found to be heavily concentrated geographically around urban centers. About 2% of US counties (50 counties) received 50% and 30% of the aggregate benefits from avoided criteria pollutant emissions and consumer surplus from the rebates, respectively.

Keywords: Consumer assistance to recycle and save; Vehicle scrappage; Criteria pollutant; Pollution damage cost; Consumer surplus; Rebate (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Ecological Economics is currently edited by C. J. Cleveland

More articles in Ecological Economics from Elsevier
Series data maintained by Dana Niculescu ().

Page updated 2017-09-29
Handle: RePEc:eee:ecolec:v:96:y:2013:i:c:p:173-180