by Ted Gayer, Emily Parker
November 07, 2013
“Cash for Clunkers,” was a government program that allowed consumers to trade in an older, less fuel-efficient vehicle for a voucher to be applied toward the purchase of a newer, more fuel-efficient vehicle. Our evaluation of the evidence suggests that the $2.85 billion in vouchers provided by the program had a small and short-lived impact on gross domestic product, essentially shifting roughly a few billion dollars forward from the subsequent two quarters following the program. The implied cost per job created due to the program was much higher than what was estimated for alternative fiscal stimulus programs.