Refuel Economy with Cash for Old Cars

Jason Bordoff, The Brookings Institution

Abstract

The incoming administration needs to act quickly to stimulate our ailing economy. Jason Bordoff suggests that one way to stimulate the economy and prevent the collapse of the auto industry, tackle climate change and promote oil independence, is to offer “cash for clunkers”—drivers would be given vouchers toward the purchase of newer, more fuel-efficient vehicles, with the old vehicles scrapped to get them off the road.