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My guess is the level of subsidy here is low enough that not too many cars with a lot of use left in them are being scrapped. That is, the cars being traded in
by jmull 6y ago
My guess is the level of subsidy here is low enough that not too many cars with a lot of use left in them are being scrapped. That is, the cars being traded in were going to get scrapped soon in any case. The main effect of the subsidy is to move people to greener alternatives, rather than finding another car.
- mytailorisrich 6y ago> That is, the cars being traded in were going to get scrapped soon in any case. Would not that make this subsidy no more than a "windfall gain", then? I.e. it makes little to no difference and people are just happy to pocket the extra money. > The main effect of the subsidy is to move people to greener alternatives, rather than finding another car. An ebike/escooter is quite different from a car so I have my doubt that people will change their purchasing decisions base on a small-ish cash bonus: If I need a car I will still buy a car but if I was already thinking of buying an ebike/escooter than obviously I like the windfall as a bonus. Or maybe I'll buy an ebike with the subsidy cash in addition to buying a new car...
- JoeAltmaier 6y agoPeople have cars for all sorts of reasons. To the degree this program works, some good will have been done. And it is likely to sway some who had not considered the options yet. Especially with the subsidy. Sad the article doesn't report anything about changes in e-bike use etc. Just that people are applying for and taking taking the money. Of course they are.
- mytailorisrich 6y ago> To the degree this program works, some good will have been done. You need to objectively define what "works" means. We need to compare the cost with the effect and with the likely course of events without the subsidy (the latter is often difficult to do especially when the 'natural' trend already goes in the same direction as what the policy tries to encourage, and in this case sales e-bikes and e-scooters are already booming). I may sound very critical. This is because I do think that many of these so-called "green initiatives" at the moment cost public money with no clearly quantified or quantifiable benefits at a time when public finances in most European countries are already pushed to the limit. > Just that people are applying for and taking taking the money. Of course they are. Indeed.