Under the Hood of Cash for Clunkers

  • Congress is trying to work out a bill that would mean bring in a clunker, get cash towards the purchase of a new high mileage car (Photo source: Flicka at Wikimedia Commons)

On Capitol Hill, there’s growing momentum for legislation called “Cash for Clunkers.” In fact, there are several bills circulating in Congress and the details are in flux. But the general idea is to use tax dollars to encourage people to trade their old gas guzzling clunker for a new fuel efficient car. The hope is to help the slumping auto industry and the environment at the same time. Tamara Keith gives the environmental claims a test drive:

Transcript

On Capitol Hill, there’s growing momentum for legislation called “Cash for Clunkers.” In fact, there are several bills circulating in Congress and the details are in flux. But the general idea is to use tax dollars to encourage people to trade their old gas guzzling clunker for a new fuel efficient car. The hope is to help the slumping auto industry and the environment at the same time. Tamara Keith gives the environmental claims a test drive:

At DarCars, a Toyota dealership in Silver Spring, Maryland people are shopping for cars.

But business is down.

Tammy Darvish is vice president of DarCars automotive group. Here’s how she describes “cash for clunkers.”

“It’s money from heaven.”

Well, from angels in Congress anyway. Bring in a clunker, get cash towards the purchase of a new high mileage car.

“I think they were talking about $4,000 or $5,000 or even $2,000. Whatever it is. Any incentive that you could add to the manufacturer incentives and the dealer incentives just make it all the better deal for the customer.”

And as we walk around the lot, Darvish points out plenty of cars she figures could qualify as fuel efficient replacements for clunkers. Like this one that gets 35 miles to the gallon on the highway.

“So here’s a Corolla and it’s not a hybrid technology vehicle and it’s still getting great gas mileage and all the manufacturers have vehicles, you know in those ranges.”

But not everyone is sold on the merits of a cash for clunkers program.

Dan Sperling heads the Institute for Transportation Studies at University of California Davis.

“What it mostly does, and we should be honest about it is it stimulates vehicle sales.”

He says this is more an economic policy with a green polish.

“It is supporting the use of more low carbon efficient vehicles, that’s good. It is supporting the automotive industry. That’s good. The problem is, it’s a very expensive way to do that.”

Whether a federal cash for clunkers program will be able to claim environmental success will largely come down to what counts as a clunker – and just how fuel efficient the car that replaces it needs to be.

For example, one version of the legislation would allow any car 8 years old or older to be junked in exchange for cash.

But an 8 year old car isn’t exactly a gelloppe. That’s younger than the average car on the road.

Bill Chameides is dean of the Nicholas School of the Environment at Duke University.

“I would say that cash for clunkers programs that only put a requirement on the age of a car, from an environmental point of view is a real clunker, if you pardon the pun.”

To really analyze the environmental impact of a program like this Chameides says you also have to consider what it takes to manufacture a new car. And it turns out a lot of greenhouse gas emissions come from building a car.

“When you drive that new car out of the showroom, you already have 1 year of carbon dioxide emissions already in the atmosphere.”

So, to make up for those emissions, he says cars getting junked have to be real gas guzzlers, and the new cars need to be gas sippers.

“If we want to sell this as an environmental program we need to make sure that it’s focusing on really making a difference in the amount of gasoline we use, the amount of CO2 we emit. And therefore we need to have a limit on the miles per gallon of the scrap car. It need to be way down at the bottom of the spectrum. And we need to have a limit on the new car. It needs to be up high on the spectrum.”

There’s disagreement in Congress about what the mileage requirements for the program should be.

It’s one of those details yet to be worked out, that will determine just how green cash for clunkers will really be.

For The Environment Report, I’m Tamara Keith.

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