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After the “clunker” was traded in, its engine was destroyed. 677,842 clunkers were traded in between 1 July 2009 and 24 August 2009 as part of the program, which issued $2.85 miles per gallon (9.4 billion in vouchers; NHTSA concluded that the new vehicles purchased under the program averaged 24.9 l/100 km), compared to the 15.8
Burton Abrams and George Parsons of the University of Delaware evaluated the efficiency of the recently concluded Cash for Clunkers (CARS) program and concluded that the cost exceeds the benefit by approximately $2,000 per vehicle, or close to $1.4 billion in total. Their paper appears in the online journal The Economists’ Voice.
Cash for Clunkers”) program could maximize greenhouse gas emissions savings by using fuel-economy based eligibility requirements rather than age-based requirements. Alexander Allan, Rachel Carpenter and Geoff Morrison (2009) Abating Greenhouse Gas Emissions through Cash-for-Clunker Programs ( UCD-ITS-RR-09-26 ).
Thanks to the strong financial incentives offered by the Cash-For-Clunkers program , the average gas mileage of new vehicles sold in the U.S. during August reached a record high: 23 miles per gallon, up 8 percent from the 21.2 mpg in August 2008.
Over time, we can conserve by reducing the miles we drive. That means we’ll be powering some miles with increasingly renewable electricity that isn't made from imported oil. While we’re fixing vehicles, we can also equip them with low-cost real-time MPG indicators that show us how to save money and still get to places quickly.
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