Abstract of the Week
Posted at 5:01 p.m. on Nov. 1
Ted Gayer and Emily Parker have a new paper for the the Brookings Institution evaluating the effectiveness of the “cash for clunkers” program that tried to boost the economy during the Great Recession.
“The Car Allowance Rebate System (CARS) or “cash for clunkers” program, launched during the height of the recession with the intention of stimulating the economy, creating jobs, and reducing emissions, was actually far more expensive per job created than alternative fiscal stimulus programs. Ted Gayer and Emily Parker have performed a wide-spread evaluation of the various aspects of the program, from numbers of vehicles traded-in to impact on GDP, cost per job, environmental impact and the types of consumers who took advantage of the program.”