Thursday, October 29, 2009

Cash for clunkers was really expensive (on average)

I haven't seen the actual report, so their numbers might be bad, but I found this interesting:

"Taxpayers real cost for cash-for-clunkers"

Note that this is an incentive program for getting old, inefficient cars off the road.

What were the goals behind the program? That is, what were the benefits that gov't was seeking to achieve?

We have an estimate of the average cost here... what would we need to complete the analysis?

UPDATE: It seems that the White House is not too happy about the report.

1 comment:

John McGregor said...

It's hard evaluate the success of such a program and I found myself puzzled with its mechanics upon hearing about the program for the first time. After an article such as from Edmund's, I found myself not surprised and less surprised from such a defensive rebuttal from the administration. Its hard to determine what to think, however I do believe the program was inefficient due to the unclear results it has produced months afterward. General public will buy whatever is available(no incentive needed, they don't see the impact of their individual car, they just need to commute efficiently), so make the clunkers unavailable and inconvenient to buy or manage through regulation or incentive to auto firms or fuel providers, rather than toss unfathomable amounts of money around and make speculations of what it really accomplished. Numbers claimed as 'faulty' verses vague claims of positive spillover effects- who knows?
-John McGregor