The US has recently seen its hugely successful ‘Cash for Clunkers’ program close. This program gave $4,500 to encourage people to trade in their inefficient old cars for new, low emission alternatives. It was a very cost effective way to encourage a rapid increase in the nation’s fuel efficiency.
Australia spends many millions of dollars each year to give ‘first-home-owner’ grants to homebuyers, with grants designed to encourage home ownership and the purchase of newly built homes. If it is ok for the government to pay people to buy new homes, why arnt we considering paying people to buy fuel-efficient and hybrid vehicles? In a world where drastic CO2 omission cuts are needed, shouldnt all options be on the table? After all, Australian passenger cars account for 7.8% of total emissions. This is a number which can be dramatically reduced simply through encouraging greater numbers of fuel efficient car purchases.