Overview of the Cash for Clunkers Program and an Assessment of its Success

Abstract

The United States automobile industry was one of the first sectors to be hit by the economic downturn of 2008-09 and it was also one of the hardest hit industries. At the same time there has been an intensive debate regarding the fuel efficiency of United States automobile fleet given concerns surrounding dependence on foreign oil and also the possible impacts of climate change. The Car Allowance Rebate System (CARS), more commonly known as Cash for Clunkers (CFC)was launched by the federal government in July 2009 and lasted through the end of August. This project uses data from a variety of sources and reviews the existing research literature to give an overview and assess the impact of the CFC program.