Professor compares clunkers, cap-and-trade programs

Professor compares clunkers, cap-and-trade programs

Aug. 17

A University of California-Davis professor estimates the federal government´s Cash for Clunkers program is paying 10 times more per ton to reduce carbon emissions as it would pay under a cap-and-trade system.

UC Davis transportation economist Christopher Knittel analyzed the cost of the Cash for Clunkers program as compared to the cost of carbon credits.

While carbon credits are projected to sell in the United States for about $28 per ton, even the best-case calculation of the cost of the clunkers rebate is $237 per ton, said Knittel said.

Knittel estimated the government would pay an average of $4,200 to each owner of a clunker redeemed under the federal program. He then made assumptions about how long each car would have remained on the road if not for the program, how many miles each year owners would have driven their cars, and he made estimates about the mileage achieved by new cars bought under the clunkers program.

Contact Waste & Recycling News senior reporter Bruce Geiselman at 330-865-6172 or bgeiselman@crain.com

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