Cash for Clunkers Green Initiative: Good or Bad?
Otherwise known as Car Allowance Rebate System (CARS), this latest initiative from the US Government had a dual purpose — first, it was supposed to encourage consumers to buy fuel efficient vehicle by trading their old, less eco-friendly cars; and second, it was to help the automobile industry by increasing demand and sales to help curb recession.
The program was launched on the first day of July but took effect on its last week when claims were already processed, quickly exhausting the alloted budget of $1 Billion for the program.
Now, some sectors, mostly coming from environmental groups, are arguing that while the initiatives of “Cash For Clunkers” looked seemingly favorable and positive, it may now actually be a bad idea. They argue that the two-fold focus of this program is, in fact, most likely one sided, citing that the government’s focus was into helping the auto industry, rather than putting its green initiative as priority.
Under the program, a consumer is entitled to get a rebate when they turn over a car that is less than 25 years old. The rebate is about $3,500 to $4,500, which is a huge help when one is purchasing a brand new car. The program, however, doesn’t require every one to strictly get fuel efficient cars. They can trade in almost any other car they like.
The economic benefits far outweigh the environmental benefits, and the problem these environmental groups are seeing is that, people will be encouraged to use their money to decide on buying something that may not actually help the environment. How’s that for green initiative?
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Great recommended read from around our network:
‘Against All Odds’ A Compelling Tale of Faith and Second Chances
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