The Implied Cost of Carbon Dioxide under the Cash for Clunkers

The Cash for Clunker program aims to stimulate the economy, provide relief for automobile manufacturers and reduce greenhouse gas emissions. This report presents estimates of the implied cost of carbon dioxide reductions under the Cash for Clunker program. The estimates suggest that the program is an expensive way to reduce greenhouse gases. This is true under a wide range of assumptions regarding the increase in fuel economy of new vehicles purchased under the program, how long the clunkers would have been on the road if not for the program, and whether we account for reductions in criteria pollutants. Conservative estimates of the implied carbon dioxide cost exceed $365 per ton; best case scenario parameter values suggest a cost of carbon dioxide of $237 per ton. The calculated implied cost of greenhouse gas emission reductions exceeds those estimates from the Waxman-Markey bill by nearly tenfold.


  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 01159614
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Report/Paper Numbers: UCD-ITS-RR-09-24
  • Files: BTRIS, TRIS
  • Created Date: Apr 30 2010 2:58PM