<VV> Cash for Clunkers

[Alan and Clare Wesson]

>A similar program in Europe has been an effective stimulus for new
> car sales.  However, a life-cycle analysis would very likely show
> its "green" impact to be negative.

This has been going in Italy for years. The junk yards there are full of 
nice 70s and 80s classics with destruction orders on them. I almost 
literally wept at a couple of them (one was a 70s Lancia with 17000 km on 
the clock, absolutely mint, undented bodywork, and all the plastic shrink 
wrap from when it was new still on the carpets and door cards. It was just 
parked there in the yard, and I could have driven it out the gate. Except 
that the yard owner wasn't allowed to sell it to me). A few 60s but not many 
(but this would kill some Corvairs, because not everyone has read the 
'script' and knows they are driving a valuable collector car!).

And it's not good environmentally, because a car's manufacturing carbon 
footprint takes 8 years to amortize and our scheme kicks in at 9 years, so 
just as the car has caught up with its existing carbon balance, it gets 
junked and the whole thing starts again.

The Brit scheme isn't even turning out well for the manufacturers:

http://news.bbc.co.uk/1/hi/business/8041228.stm

However, even if it doesn't take off very far in terms of numbers, it will 
bring in a significant amount of tax, which will be relatively cheap to 
collect...

...and that is surely the main point of the operation!

Green indeed...

Cheers

Alan