Green rebates just look like a bailout. On July 1. 5, the Ontario government announced rebates of up to $1. This is a sizable increase in Ontario's current support for such purchases, and continues the trend of subsidizing hybrid vehicle purchases that began a decade ago in British Columbia and currently extends to five provinces. Previously, the federal government also encouraged the purchase of hybrid vehicles through cash rebates as part of its eco. AUTO program. This program effectively ended on Dec. We recently studied rebate programs supporting the purchase of hybrid electric vehicles in B. C., Ontario, Quebec, P. E. I. We compared vehicle purchasing patterns in provinces with and without rebates, and accounted for factors that caused vehicle purchases to vary across provinces and over time, including the state of the economy, fuel prices, and rebates and subsidies. Our research suggested two main reasons why such subsidies are not an effective way to improve the environment. First, we found that less than one- third of the hybrid vehicles sold during the rebate programs could be attributed to the rebate. Thus, more than two- thirds of the rebate is given to people who would have bought hybrid cars in any case. Second, most of the additional hybrids were bought in lieu of small conventional cars such as compacts and intermediates. We found that very few consumers were persuaded to switch from a gas guzzler to a hybrid car. Therefore, the fuel savings from these programs are small as they largely encourage substitution among car models that are all relatively fuel efficient. We calculate that, on average, the cost of fuel saved through these programs is approximately 4. CO2 saved. Moreover, the cost becomes disproportionately higher as the amount of rebates increases. We fully support government efforts to encourage energy conservation and the use of sustainable fuels and we applaud efforts to convince consumers to use cleaner energy sources. However, our research indicates that the small environmental gains from such programs come at a very high price. We suspect that with the increase in Ontario's subsidy to $1. The federal eco. AUTO program cost $1. B. C.'s hybrid rebate program costs tens of millions of dollars. At a time when government resources are scarce, why would the government of Ontario want to spend such a large sum of money on an ? The answer may be that this isn't an environmental program after all, but a thinly disguised bailout for local car manufacturers. The government of Ontario is following in the footsteps of the U. S. The Emergency Economic Stabilization Act of October 2. U. S.) for plug- in hybrids and its scope was extended by the American Recovery and Reinvestment Act of 2. This tax credit is essentially stimulus spending with a marginal environmental benefit. We also find that the Federal ecoAUTO feebate program improved fuel economy of new vehicles by less. The European Union also moved from voluntary to mandatory limits in 2009 with a target of 95 grams of CO 2 per km for.We recognize that the government of Ontario has to contend with political pressures from the same automobile industry that lobbies the U. S. However, there is no reason why we should consider this subsidy to be anything other than targeted stimulus spending to raise the sales of the Chevy Volt. The authors are assistant professors at the University of British Columbia. Ambarish Chandra is at the Sauder School of Business; Sumeet Gulati is at Food and Research Economics; Milind Kandlikar is at the Institute for Asian Research. The ecoAUTO Program encourages Canadians to buy fuel-efficient vehicles by offering rebates ranging from $1,000 to $2,000. The ecoAUTO Rebate Program provides for rebates, from CAD1000 to. The list of eligible vehicles is established each year by Transport Canada. This programme ended March 2009. August 2009 Highlights of Provincial Greenhouse Gas. Highlights of Provincial Greenhouse Gas Reduction Plans August 2009 Note. EcoAUTO Rebate Program Final Report June 2011 June 2011 SP-1025-02-12E. Evaluation of the ecoAUTO Rebate Program Final Report Evaluation Directorate Strategic Policy and Research Branch. Evaluation of the National Vehicle Scrappage Program. As the program was not fully implemented until 2. Some regions had difficulties reaching their targets due to a lack of recycling infrastructure and other logistical issues. Most of the program’s users preferred the cash incentive and replaced their vehicles with another one. The manufacturer rebates affected the type of replacement vehicle purchased, as more program users who obtained rebates opted for larger vehicles than the ones they retired. Environmentally safe practices in the recycling of vehicles were promoted during the program by requiring all participating recyclers to adhere to the recycling code of practice. ARC reported that it now has approximately 4.
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