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Did Cash For Clunkers Help the Environment?

December 2nd, 2009

The overriding purpose of Cash For  Clunkers was designed to boost the economy as well as the green factor of the U.S. at the same time. But was it successful? Maybe.

Consider some figures released to The Associated Press, the Cash For Clunkers program “mostly involved used engines from old Ford or Chevrolet pickups for new ones that got only marginally better gas mileage.” The most popular trade-in, according to AP, was a deal where drivers traded in their old Ford F150 pickups for the new Ford F150. Technically, this satisfied the caveat which implored drivers to get more fuel efficient cars – the new F150 is rated at 15 to 17 miles per gallon, a 1 to 3 MPG improvement over its older counterpart. Maybe the government should’ve been more specific.

In fact, the government reported that about $562,500 of the rebates were spent towards cars and trucks that “got worse or the same mileage” as the supposed “clunkers.” The government is currently investigating these incidences, but assumes that these were due to a clerical error or outdated fuel economy figures.

The result: American taxpayers footed the bill for a $3 billion program that saved about 1.87 million tons of carbon dioxide per year, or, according to AP “a yearly savings equivalent to the amount of carbon dioxide spewed in the U.S. in just 2.5 hours.” As far as earth initiatives go, there have likely been more successful (and less costly) ones. For example, the “cap and trade” program in the 1990 Clean Air Act reduced sulfur dioxide emissions by 22 percent in its first phase and only cost about $1.8 billion, according to the Environmental Defense Fund.

But the environmental shortcomings don’t end there. As part of the Cash for Clunkers programs, all trade-ins had to be disabled to prevent them from getting back out on the road again. This ended up being a huge blow to the used car market as well as another important facet of conservation: the auto recycling industry. The engines of the trade-ins were completely disabled by pumping them full of sodium silicate to prevent fraud. Under normal circumstances, even junked cars would be salvaged for useable parts. Auto recyclers would strip them of their engines, transmissions and other parts and rebuild or refurbish them for sale. The engines in disabled clunkers are obviously unsalvageable – but the problem is compounded by the six month deadline for scrapping trade-ins. Some auto yards can’t strip the cars fast enough and may have to send perfectly useable parts into the crusher.

While the realities of the miles per gallon savings and the implications for auto recyclers seem to be contrary to the overall goal of Cash for Clunkers, the program was not a resounding failure. Many local dealers report that the program was a good “shot in the arm” for business, which is much needed as we see hundreds of dealers closing across the nation. But as far as saving the Earth goes, it’s very possible that the government could’ve done better.

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