Hi Everybody!
Thought I'd begin some transport discussions ....
So, has anyone heard of "Cash for Clunkers"? You get $4000 if you trade in an old, inefficient car for a newer one that gets at least 4 miles per gallon better fuel efficiency.
Do you think that's a good deal? For the climate, the tax payers or the buyers?
Apparently it'salmost sold out in a week . Why?
Great meeting you all!
See you tomorrow,
Amiel
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I believe its $4500 for your car...
ReplyDeleteBut anyways, I don't think its that great of an idea beacuse even though you get UP TO (not gaurenteed) $4500 it still comes out of your wallet and the wallets of those around you through taxes so, the money is just shifted around like a hot dog on a BBQ.
The reason its almost sold out is beacause the government is running out of money to refund for the old cars.
And unless you have enough money to buy an efficent car (even after the $4500 rebate) it doesn't do any better for the environment because some people think they (or actually do)need a larger car and are going to buy one anyways because 4 mpg better than your old car isn't that much compared to today's technology
Hello
ReplyDeleteJust checking in on the blog before our meeting.
I did some math on this Cash for Clunkers. And think it's a Clunker for the Climate. Here's why.
In the carbon trading market, one tonne of carbon reductions costs around $4 - $14 which seems pretty cheap.
But, Cash for Clunkers turns out to achieve about 1 tonne of CO2 reductions in total but at a cost of $4000.
Here's why. Let's say the Clunker we turn in gets 20 mpg and we buy a car that gets 25 mpg (which is more of an improvement than what's required). The CO2 emissions from our original car, over 100,000 miles traveled in its lifetime, would be based on 100,000/20 gallons of gasoline (that is 5000 gallons) which emits 5 tonnes CO2 (roughly multiply by 20 lbs CO2 per gallon and divide by 2000 to get tonnes of CO2). The new car would emit roughtly 4 tonnes (100,000 miles divided by 25 mpg times 20 lbs CO2 divided by 2000).
So for our big investment of $4000 we achieved one tonne of CO2 reductions. Instead, if I'd gone to the carbon market, I could have bought up to 1000 times as much climate benefit.
For the carbon audit which my old lego team did in 2007 for our church, we figured that they emitted about 100 tonnes CO2 per year and spent roughly $1000 a year on carbon credits. So they could have bought carbon credits to emit zero tonnes of CO2 (net of the credits) for four years in a row based on the same $4000 which a Clunker receives as Cash.
So I think the climate is loosing out here -- and the government too -- since they're spending so much money for so little achieved.
Can't wait for the meeting,
Amiel
Great analysis, Amiel. Can you explain how the carbon trading market works for the team?
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