Cash-for-clunkers was a program designed to stimulate the economy and reduce greenhouse gas emissions. Now, the government is initiating a new plan that will provide rebates for household appliances. This research presents estimates of the cost of reducing Carbon Dioxide under Cash-for-clunkers and similar programs for both clothes washers and refrigerators. The estimates suggest that these rebate programs are an expensive way to reduce CO2 emissions. With an average rebate of $4215, baseline scenarios indicate that Cash-for-clunkers costs $370.26 for a one metric ton reduction in CO2, and $414.62 per ton when the scenario includes the incentive to drive more that accompanies owning a more fuel efficient vehicle. The baseline scenarios for refrigerators resulted in a lower cost of $302.03 per metric ton of CO2, while clothes washers were more expensive with a price of $734.68 per metric ton of CO2.
Bibliography : pages 59-62