The cash for clunkers program is mostly an economic stimulus program ... the improvements in efficiency are modest and, when one factors in the energy costs to make a car, it is possible there is no long term environmental improvement. It is a give-away to support the automotive industry and a cash refund to relatively well-off Americans who can afford a new car.
One can think of other ways to make it "green" or to make it a more efficient economic stimulus, but what if you were trying to do something that might make a larger environmental difference. In this country people might object, but what if you had a program that focused on bike sales?
Here is a proposal. About 13.4 million "adult" bikes were sold in the US last year and another 5.1 million children's bikes. Offer a $100 rebate for each adult bike and $50 for each children's bike and match it with funding going to the state (or city) where the bike was sold. The money to the cities would go to build bike friendly paths, parking for bikes, etc - essential infrastructure. Cap it at two billion dollars a year and you are probably encouraging a lot of people to get into bikes. You could more than pay for it with a two cent per gallon gas tax.
Of course this would never work because it isn't burning gasoline to work.
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