Will Trading In be a Trade Up for Energy Policy?

By Scott Bittle on June 9, 2009

Congress is getting serious about a "cash-for-clunkers" plan, essentially offering people cash vouchers to "trade in old cars for new fuel-efficient models."

Under the plan currently in Congress, consumers could get vouchers for up to $4,500 on trading in a vehicle that gets 18 miles per gallon or less for something that gets at least 10 miles per gallon more.

Obviously, anything that gets people buying cars would be good for troubled American automakers, and anything that gets people buying efficient cars would be good for our energy policy. What Americans drive is a key part of the energy debate, as you can see in several intriguing contributions to Planet Forward. The Obama administration has already taken a big step by pushing to increase mileage standards.

The findings of our Energy Learning Curve™ research offer both some good news and some cautionary notes on this front. For one thing, one-third of Americans say they've already thought about buying a more fuel-efficient car. For another, nearly three-quarters say they'd favor a tax credit for those who buy hybrids or other fuel-efficient cars.

And one thing that came across clearly in the Energy Learning Curve was that the public doesn't want to be pushed on energy issues. Anything that increases the cost of driving, like gas taxes, are solidly rejected by the public. Most Americans feel they have to drive, and the cost of doing it is already a burden. In this area, carrots are more appealing than sticks.

Tags: auto industry, automobiles, Cars, Energy, Energy Learning Curve, Environment, fossil fuels, gasoline, oil

Re: Will Trading In be a Trade Up for Energy Policy?

On June 10, 2009 Anonymous says:

I am supportive of this cause, it sounds like you really know what you are talking about and you have a plan to give back to the people. My mom is always looking at new hybrid cars and is always complaining we can't afford it so we are forced with, a 1989 toyota pickup pile truck, a decent 2004 jeep grand cherokee, a chevy malibu, we need to get rid of our cars and buy fuel efficient cars every cent we can save on gas is worth it right now with our financial situation. Though your argument about it is also true about the people, they don't want to be forced into buying more cars or worrying about another car expense, they do realize its just apart of the world and everything will cost what it will half to, people need to drive to work always and buy gas already.