The scrappage program is a government budget program to promote the replacement of old vehicles with modern vehicles. The scrappage program generally has a dual purpose to stimulate the car industry and eliminate inefficient high-emission vehicles from the road. Many European countries have introduced large-scale scrappage programs as economic stimulus to boost market demand in the industrial sector during the global recession that began in 2008.
The scrappage program is heralded under a different name, mostly referring to the environmental benefits. Vehicle Efficiency Incentives in Canada are based on car fuel efficiency. In Romania, the program was called "Rabla" (accident), and aired by DACIA in 2000. In Germany, the economic stimulus program is called "UmweltprÃÆ'¤mie" ( environmental premium) and in Austria "ÃÆ' â € "koprÃÆ'¤mie" ( eco-premium ) while most publicly call it simply "AbwrackprÃÆ'¤mie" ( premium scrappage ). Other countries have not yet tried to link the title of the program to the environmental aspects - still the Italian "Incentivi alla rottamazione" ( incentive scrappage ) and the French "Prime ÃÆ' la casse" ( premium scrappage ) requires a new car to meet modern emission standards. The scrappage scraper incentive scheme and the British scrappage scheme do not have such requirements, and the UK scheme is openly sketched on targets to provide financial support to the motor industry. Similarly, the United States Congress designed a scrappage scheme, commonly called "cash for clunkers," as part of the general Stimulus Automotive package series; however, vouchers are only given when newer cars have better fuel efficiency than old cars.
In the 1990s, many countries have introduced tax rebate programs for new cars that meet modern emission standards, but, with the Kyoto Protocol, some countries make public bidding depending on old car scrappages.
Other programs with the same goal to stimulate industry and improve efficiency include Cash for Caulkers plans to promote replacing old refrigerators, air conditioners, etc. With newer and more efficient equipment.
Video Scrappage program
Approach by country
Austria
The scrappage scheme in Austria was introduced on April 1, 2009, and allows customers to cash EUR1,500 if the car is older than 13 years and the new car will meet the Euro-4 emission criteria. There is a limit of 30,000 cars until December 2009.
Canada
The Retire Your Ride program, run by the Government of Canada, allows Canadian residents to trade in vehicles made in 1995 or earlier for prizes, such as public transit tickets or C $ 300.
China
In June 2009, the national scrappage program was implemented by offering a discount of $ 450 to $ 900 for trading heavy-duty cars and heavy-duty trucks for the new, the program runs until May 31, 2010. The program is expected to replace 2.7 million pollutants from the national level. fleet of cars.
Eligible vehicles include minivans used, small and medium trucks and other medium-size passenger cars that no longer meet government emissions standards. In addition, the Shanghailocal government offered similar incentives of $ 450 to $ 1,100 per vehicle for its residents who traded older vehicles, allowing the total subsidy to be as much as $ 2,000.
After meeting with little success in the first few months, the government raised compensation to 5,000-18,000 Yuan, or about 732-2.632 US dollars, for each qualified vehicle at the end of 2009. In June 2010, it was announced that the program would be extended to the end 2010.
French
The scrappage scheme from France was introduced on January 19, 2009 - the old car must be older than 10 years and a new car would be required to meet the CO 2 emission standards - starting with EUR1000 for cars with less than 160 g/km. This is added to better emission standards (EUR5000 for cars with less than 60 g/km - effectively one electric vehicle) and "super-bonus" for scrappage of old cars.
French car manufacturers are making use of this scheme for new car purchases in Ireland as well, so Irish customers who buy a new French car can avail grants from the French Government and Irish Government.
German
The German scrappage scheme has been the biggest so far. Any car owner older than 9 years is entitled to a scrappage premium of EUR2,500 ($ 3,320) when purchasing a new car. When introduced on January 13, 2009, the program was limited to 600,000 cars at most and EUR1.5b budget. But the auto market exploded with an unexpected increase of 40% (in March 2009 compared to March 2008) in sales that made the program run too short to offer more than short-term stimulus - estimates suggest that program funds will be used until May. On March 25, 2009, the government decided to continue the scrappage scheme at least until the end of the year. A German think tank estimates that the net impact of the program on the German budget will be EUR2.5b ($ 3.5b).
The impact on cars has varied. Ford has benefited from high sales of Ka, Fiesta, and Fusion - together up 56% in April 2009 from a year earlier. However, luxury cars such as BMW, Mercedes-Benz, and Porsche get little benefit from the program and may have customers who prefer cheaper and smaller cars.
The German authorities found an illegal scheme in which an estimated 50,000 disposed vehicles have been exported to Africa and Eastern Europe. In contrast to the Cash Program for Clunkers US which requires dealers to destroy old machines by draining motor oil and injecting sodium silicate, the German program requires only disposed vehicles to be shipped to junkyard, thus allowing illegal exports.
Italy
In Italy there is a scrappage scheme from January 1, 2007, to December 31, 2008, which allows for EUR700 plus tax rebates. The new scrappage scheme is implemented in 2009. The new car must meet the minimum by Euro 4, emitting a maximum of 130 g/km (diesel) or 140 g/km (other fuel) CO2. The eraser incentive for cars is EUR1,500 but can be combined with a purchase incentive of EUR1,500 for new cars using CNG, electricity or hydrogen (increases to EUR3,000 if emits exactly 120 g/km and to EUR3,500 if it emits less of 120 g/km) The purchase incentive for new cars running on LPG is EUR1,500, increasing to EUR2,000 if the car emits less than 120 g/km. This can also be combined with scattering incentives. The Scrappage program ended in December 2009 with vehicle shipments in March 2010.
ireland
Ireland has introduced a scrappage scheme for the second time on December 10, 2009 that offers EUR1,500 for cars 10 years or more. Discounts are on Vehicle Registration Tax and can only be used on cars with emissions not exceeding 140g/km. In 2010, the scheme value was reduced to EUR1,250 per used car and the final date for the scheme was set for June 30, 2011. The first scheme runs in the early 1990s.
Japanese
Japan introduced the program from April 1, 2009 to March 31, 2010 (or up to budget), offering up to 250,000 yen (~ US $ 2,500) to trade in vehicles aged 13 years or more for new environmentally friendly fuel-efficient cars, according to the criteria environmental performance set by the government. Rebate purchases are 125,000 yen (~ US $ 1,250) if trading for mini-cars or kei, which have been subjected to preferential tax treatment, are built to the specifications prescribed by law in Japan that place limits on engine displacement and size strength. The Japanese government also included tax relief on gasoline-electric hybrid vehicles and other low-emission cars and trucks, allocating $ 3.7 billion for the program.
Luxembourg
In Luxembourg the scrappage scheme was introduced in January 2009 which allows for premium if older cars are older than 10 years and new cars to meet CO 2 & lt; 150 g/km (1,500 euros) or CO 2 & lt; 120 g/km (2,500 euros).
Netherlands
The Dutch government provides EUR750 or EUR1,000 premium in relation to the car industry. The city of Amsterdam provides an additional premium between EUR250 and EUR1,000.
Norwegian
In Norway, "Vehicle Charge Tax" for all motor vehicles was introduced in 1978. When purchasing or registering a new vehicle, the standard tax of EUR190 (per year 2010) was paid to the Norwegian Customs and Excise Authority. This tax is returned when disposing of the vehicle.
Portugal
Portugal has upgraded a scrappage scheme that allows EUR1,000 for cars older than 10 years and EUR1,500 for older cars 15 years if cars are being recycled and new cars have CO 2 & lt; 140 g/km. In January 2010, the Portuguese Government made a legal proposal to limit CO2 emissions from the new car to 130 g/km. This proposal will be selected in early March.
Romanian
In Romania the scrappage scheme was introduced in 2000 by DACIA itself after it was purchased by Renault, and then, in 2005 by most if all car dealerships with government assistance, and it allowed 3,800 lei (1 euro = 4.2 lei) discount customers if the car was older than ten years. There are no restrictions on emissions from new cars to be purchased. Since 2010, one person can scrap up to three cars and/or use the same amount of vouchers in exchange for new ones, but by 2012 this is canceled. In 2014, the value of the voucher is increased to 6,500 lei and the age of the car is reduced to eight years.
Number of cars traded
Russian
The car scrappage scheme has been in effect in Russia between 2010 and 2011. It allows owners of lightweight cars older than ten years (who own cars for at least a year) to receive subsidies of 50,000 rubles ($ 1,751) if they buy new cars produced in Russia.
The scheme resumed in 2014, now offering incentives of at least 40,000 rubles (825 euros) for cars that are at least six years old. A total of 500,000 certificates were issued during the first incident, and 170,000 were then resumed.
Slovakia
In Slovakia the scrappage scheme is introduced which allows for EUR2,000 (initially EUR2,500) if the old car is older than 10 years and the new car is under EUR25,000.
Spanish
In Spain there is a scrappage scheme (Plan 2000E) with a special credit scheme for new cars (category cars M) to reach levels less than 120 g/km and trucks (category M vehicles) 160 g/km and if older vehicles are over 10 years or 250,000 km.
United Kingdom
The UK introduced a scrappage incentive scheme in the 2009 budget. Stopping cars at least 10 years old (enrolled on or before July 31, 1999) enables cash incentives of  £ 2,000 - shared money loads, with Ã,  £ 1,000 funded by the government and Ã,  £ 1,000 funded by automobile industry. Government investment was initially limited to Ã,  £ 300 million allowing approximately 300,000 customers to gain profit. Many dealers who take part in the scheme offer more than the suggested Ã, 1,000 pounds, many of which reach Ã,  £ 2,000 or even Ã, £ 3,000.
The UK scheme is intended to provide financial support to the motor industry, after the recession has caused new car sales to fall. Most assume that the new car includes environmental benefits, but the Economist Willem Buiter questioned the environmental benefits of the program.
On September 28, 2009, it was ensured that further investment from the government would be introduced to further extend the scheme. It will now include registered cars until the end of February 29, 2000.
The scheme was closed on March 31, 2010.
Cars at competitive prices from traditional "budget" brands are sold very well in the UK while scrappage schemes are in place. These include Hyundai i10 and Kia Picanto.
United States
The Car Allowance Rebate System (CARS) is a $ 3 billion US federal program that helps US citizens to buy new, more fuel-efficient vehicles when trading with fuel-efficient vehicles. The program officially started on July 1, 2009 and claims begin processing until July 24, and ends on August 24, 2009, because the appropriate resources have been exhausted.
The initial $ 1 billion fund allocated to the system expired on July 30, 2009, well before the expected end date of November 1, 2009, due to extremely high demand. In response, Congress approved an additional $ 2 billion for the program.
On Aug. 26, the DoT reported that the program generated 690,114 dealer transactions that applied for a total rebate worth $ 2,877 billion. At the end of the program, Toyota accounted for 19.4% of sales, followed by General Motors with 17.6%, Ford with 14.4%, Honda with 13.0%, and Nissan with 8.7%. Toyota Corolla is classified as the top seller of the program and Ford Explorer 4WD is the top trade-in.
The Transportation Department also reported that the average fuel-efficiency trade-in is 15.8 mpg, compared to 24.9 mpg for new cars purchased to replace it, which translates to a 58% increase in fuel efficiency. However, a study by researchers at the University of Michigan evaluates the effect of the program on the average fuel economy considering the baseline in the absence of the program, as there is already a tendency to buy vehicles with higher fuel economy due to high gasoline. prices in 2007 and 2008, and the 2008 economic crisis. The study found that the program improved the average fuel economy of all vehicles purchased by 0.6 mpg in July 2009 and by 0.7 mpg in August 2009
Comparison between selected countries
Maps Scrappage program
Reception
- The OECD suggests measuring the "community social costs" of the scrappage program as the difference between the value of the destroyed asset, fuel savings, avoided emissions, avoided casualties. Support for the automotive industry is considered as a possible desired effect but not considered in this calculation.
- The economic forecaster and former Republican Senate candidate Peter Schiff argues that it is economically inefficient to destroy cars in an attempt to stimulate the economy, equating it with a broken window error.
- The Economist is of the opinion that the program is the type of policy needed to avoid the trap of liquidity in times of economic depression. The article states that:
"... a push in demand that rebates have brought is the kind of stimulus that is urgently needed to escape from what John Maynard Keynes calls a" liquidity trap. "According to his theory, consumers can become so worried about the economy that they rely on as much liquid wealth as possible, cut their spending sharply and thus precisely trigger the deterioration they fear. In addition, as the stimulus policy goes, cash-for-clunker looks to be very effective, a very demanding measure, given that Keynes prefers, if necessary, bury the money in a bottle so that people can dig and spend it. Back-for-clunker has many benefits beyond just getting more money that passes through the hands of consumers and into aggregate demand. "
See also
- Long life of the car
- Converting electric vehicles
- European emission standards
- the 2008 EU stimulus plan
- Gas breaker
- The parable about broken window
Note
References
External links
- United States Authoritative Details
- Autogreen Official Details
Source of the article : Wikipedia
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