Vehicle Scrappage Policies for Transportation Decarbonization

Abstract

The U.S. aims to reduce economy-wide greenhouse gas emissions by 50% (from 2005 levels) by 2030, and to net zero by 2050, in line with international climate agreements. Decarbonizing transportation—the highest emitting sector in the U.S. economy—is essential to meeting these goals.

Electric vehicles have significantly lower emissions than gasoline vehicles and are crucial to decarbonizing transportation. However, the current rate of fleet turnover is not fast enough to meet climate goals. Furthermore, without thoughtful policy and planning, the transition to electric vehicles could increase inequities in transportation accessibility.

Vehicle scrappage programs, like Cash for Clunkers, provide a monetary incentive to retire an old vehicle and replace it with a more sustainable alternative. If designed appropriately, a vehicle scrappage program could accelerate fleet turnover and speed up emissions reductions, while supporting transportation justice.