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An Economic Analysis of Scrappage

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  • Robert W. Hahn

Abstract

This article examines the impact of policies aimed at encouraging the retirement of older, high-polluting vehicles, such as the "cash for clunkers" policy endorsed by President George Bush in 1992. The analysis assesses the likely benefits and costs of vehicle scrappage programs. I also address the interaction of a scrappage program with other ongoing policies, such as improved inspection and maintenance. Finally, the simulation for Los Angeles suggests plausible design values for a scrappage program.

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Bibliographic Info

Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 26 (1995)
Issue (Month): 2 (Summer)
Pages: 222-242

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Handle: RePEc:rje:randje:v:26:y:1995:i:summer:p:222-242

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Cited by:
  1. Lenski, Shoshannah M. & Keoleian, Gregory A. & Moore, Michael R., 2013. "An assessment of two environmental and economic benefits of ‘Cash for Clunkers’," Ecological Economics, Elsevier, vol. 96(C), pages 173-180.
  2. Lawrence Goulder & Mark Jacobsen & Arthur van Benthem, 2009. "Unintended Consequences from Nested State & Federal Regulations: The Case of the Pavley Greenhouse-Gas-per-Mile Limits," Discussion Papers 08-049, Stanford Institute for Economic Policy Research.
  3. Harrington, Winston & McConnell, Virginia & Alberini, Anna, 1998. "Fleet Turnover and Old Car Scrap Policies," Discussion Papers dp-98-23, Resources For the Future.
  4. Lucas W. Davis & Alan Fuchs & Paul J. Gertler, 2012. "Cash for Coolers," NBER Working Papers 18044, National Bureau of Economic Research, Inc.
  5. Naoki Wakamori, 2011. "Portfolio Considerations in Differentiated Product Purchases: An Application to the Japanese Automobile Market," Working Papers 11-27, Bank of Canada.
  6. Macauley, Molly & Hamilton, Bruce, 1998. "Competition and Car Longevity," Discussion Papers dp-98-20, Resources For the Future.
  7. Shanjun Li & Roger von Haefen & Christopher Timmins, 2008. "How Do Gasoline Prices Affect Fleet Fuel Economy?," NBER Working Papers 14450, National Bureau of Economic Research, Inc.
  8. Pasquale Schiraldi, 2010. "Automobile Replacement: A DynamicStructural Approach," STICERD - Economics of Industry Papers 49, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  9. Lawrence H. Goulder & Mark R. Jacobsen & Arthur A. van Benthem, 2009. "Unintended Consequences from Nested State & Federal Regulations: The Case of the Pavley Greenhouse-Gas-per-Mile Limits," NBER Working Papers 15337, National Bureau of Economic Research, Inc.
  10. Mark R. Jacobsen & Arthur A. van Benthem, 2013. "Vehicle Scrappage and Gasoline Policy," NBER Working Papers 19055, National Bureau of Economic Research, Inc.
  11. Sandström, F. Mikael, 2003. "Car Age, Taxation, Scrappage Premiums and the ELV Directive," Working Paper Series 591, Research Institute of Industrial Economics.
  12. Werner Antweiler & Sumeet Gulati, 2013. "Market-Based Policies for Green Motoring in Canada," Canadian Public Policy, University of Toronto Press, vol. 39(s2), pages 81-94, August.
  13. Müller, Andrea & Heimeshoff, Ulrich, 2013. "Evaluating the Causal Effects of Cash-for-Clunkers Programs in Selected Countries: Success or Failure?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79802, Verein für Socialpolitik / German Economic Association.
  14. Ashok Kaul & Gregor Pfeifer & Stefan Witte, 2012. "The incidence of Cash for Clunkers: an analysis of the 2009 car scrappage scheme in Germany," ECON - Working Papers 068, Department of Economics - University of Zurich.
  15. Stavins, Robert, 2005. "The Effects of Vintage-Differentiated Environmental Regulation," Discussion Papers dp-05-12, Resources For the Future.

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