'Cash For Clunkers' Program Would Make Sense - If Approached Sensibly
A double-barreled idea that could help clean up our air and give a breath of life to a gasping auto industry is being pushed by the top Democrat and top Republican members of the House Energy and Air Quality Subcommittee.
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Recycling older, dirtier cars can create jobs, help clean the air and generate new-car sales.
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It's not a new concept, and its execution needs to be carefully thought out to prevent it from becoming punitive to car collectors, rebuilders and hobbyists, but the congressmen's call for a "cash for clunkers" program might be the start of something worthwhile.
Reps. Rick Boucher, a Virginia Democrat who chairs the subcommittee, and Fred Upton, a Michigan Republican who serves as its ranking member, are calling on President-elect Barack Obama to set aside a portion of his economic stimulus plan to pay Americans to hand over older, dirtier cars in return for cash they could use to buy clean, fuel efficient new models.
The two haven't put a pricetag on their proposal, but in a July column in the New York Times, Princeton economics professor and former Federal Reserve vice chairman Alan S. Blinder suggested a similar plan and said it could cost about $20 billion to retire 5 million old cars by paying owners $4,000 each for them.
That's a better use of taxpayer money than giving banks $350 billion so they can salt it away in their vaults and refuse to lend it to anyone who might actually need a loan.
The older cars could be stripped for reusable and recyclable parts and their metal carcasses crushed and recycled into steel for new cars and trucks.
Similar programs have been tried by air quality regulators in a number of states, including California, to varying degrees of success.
Problems develop, however when regulators try to force people to cash out their old cars, or require complete demolition of the clunkers to prohibit re-use of certain parts, such as inefficient, smog-producing engines.
When that happens, it becomes a case of tossing the baby with the bath water: Not only are the bad parts discarded, so do hundreds of pieces - from taillight housings to seat frames - that could be used by collectors, enthusiasts and low-income car owners trying to find reusable parts to keep older vehicles in good repair.
Boucher and Upton have pitched their auto plan to John Podesta, the co-chairman of Obama's transition team, according to a report in the subscription-only E&E News, an environmental and energy news service.
They said that paying people to cash in old cars would boost demand for new vehicles and help curb greenhouse gas emissions by removing older, less-efficient vehicles from the road.
The Auto Futures Group, an industry consultancy, suggests that 225,000 auto sector jobs in the U.S. would be created, or retained, for every one million cars and trucks scrapped in such a program.
Green Car Advisor took a look at auto recycling this past summer and found that it's the 16th largest industry in the U.S., generating about $10 billion annually and employing approximately 100,000 people.
We also found that recycling one car reduced greenhouse gas emissions by about 9,000 pounds - the equivalent of not burning 475 gallons of gasoline.
We think its a plan worth exploring. Do you?
John O'Dell, Senior Editor
- Posted by
- John O'Dell December 22, 2008, 12:01 AM
- Permalink
- Categories:
- Emissions, Fuel Economy, Recycling
- Technorati Tags:
- Cash for Clunkers, Economic Stimulus, Fred Upton, House Energy & Clean Air Subcommittee, Rich Boucher





As a representative of an industry (SEMA) that caters to vehicle restoration enthusiasts, I am extremely familiar with national and state efforts to address older car emissions concerns. As Mr. O'Dell suggests, the cash for clunkers concept is hardly a novel approach to this issue. In fact, many states have considered these programs as a means to supplement existing clean air efforts and chosen to abandon them. Why? They just don’t work. Questions over the ability of such programs to achieve verifiable benefits to air quality, as well as concerns over lower than projected cost-effectiveness, have caused several jurisdictions to modify, delay or even cancel their programs. In brief, the answer to Mr. O'Dell's question is a resounding NO. These programs have already been explored and found wanting.
There is currently a prohibition on federal funding for state-run vehicle Cash for Clunkers plans through use of funds available under the Congestion Mitigation and Air Quality Improvement Program (CMAQ). The reasons are fairly simple. Many state clunker programs focus on a vehicle’s age rather than the emissions the vehicle produces, based on the erroneous perception that all older cars are dirty cars. Most clunker programs do not bother to measure the real emissions of the vehicles involved. In order to demonstrate emissions reductions, these programs create estimates of emissions, which studies show are often significantly overstated. Despite numerous attempts to remove this prohibition, once lawmakers became educated to the fact that Cash for Clunkers programs are not cost-effective and do not positively impact air quality emissions or fuel economy, they have left the funding prohibition intact.
A further shortcoming of clunker programs is that they rarely capture gross polluters. The gross polluter is an improperly maintained vehicle of any model year, which puts out dramatically more emissions due to poor maintenance. Those seeking a quick fix through vehicle clunker programs ignore this reality. The real solution is to clean up the gross polluters, not waste tax dollars by indiscriminately buying up and crushing well-maintained or infrequently driven older cars.
Clunker programs further diminish the availability of affordable transportation and repair parts to low-income drivers as more and more older cars are crushed. They do not guarantee that low-income individuals will be able to afford to purchase new vehicles, let alone more fuel efficient or cleaner vehicles, with the money provided by clunker programs. For this reason, there is no evidence that clunker programs boosts demand for new vehicles, drives traffic to new car dealerships or creates or retains jobs.
Rather, auto restoration, customization and repair shops nationwide would suffer with the loss of older cars, trucks and parts they need to supply and service their customers. An unchecked Cash for Clunkers program risks destroying classic, historic and special-interest vehicles. America safeguards its artistic and architectural heritage against indiscriminate destruction. Our automotive and industrial heritage deserves the same protection.
In lieu of clunker programs, SEMA recommends programs that identify gross polluters and upgrade them with equipment that improves their emissions performance dramatically. These benefits are measured and cost-effective in educing emissions. Adapting newer technologies to older vehicles on a voluntary basis benefits the vehicle owner and achieves air quality benefits as well. A number of commercially available products and technologies exist which could substantially lower the emission rates of older vehicles while also offering the owner added performance, driveability and fuel mileage. These innovative solutions drive product sales, produce American jobs and secure tax revenues for the government all while sustaining the multi-billion dollar vehicle restoration industry for our members. Now, that’s an economic stimulus we all can support.