To prevent people from taking advantage of the scrappage scheme by buying an old banger in order to then trade in the money, applicants must have been the registered keeper of the car that is due to be scrapped for at least one year.
The scheme will run until March 2010.
Is the scrappage scheme green?
Scrappage schemes are often described as environmentally friendly because they get older vehicles off the road by scrapping them and replacing them with the latest models, but studies have found that these schemes have a relatively high cost per tonne of pollution avoided.
The Organisation for Economic Cooperation and Development found that “these schemes have a high average cost per ton of pollution avoided, and do not compare favourably with other alternative policy tools on purely environmental grounds.”
The British scheme assumes that the new car is less polluting than the one it replaces and overlooks the environmental impact of scrapping the old car and building the new one.
Car scrappage – a waste of perfectly good cars
A spokesperson for the Environmental Transport Association ( ETA ) said: “There are lots of 10-year-old cars with plenty of life left in them and from a climate perspective, to send them to the scrap heap is money poured down the drain.”
“Car scrapping schemes are good for boosting new car sales – they have very little to do with the environment and to suggest otherwise is not just greenwash, it is hogwash.”
Protests against car scrapping schemes
When no limit on the CO2 emissions of the new model is set, It means that in theory someone who scraps a 1999 Volkswagen Lupo TDi 3L, (81g CO2/km) and buys a 2009 Porsche Cayenne Turbo (358g CO2/km) would receive the taxpayer-funded payment.
There are scrappage schemes already in place across Europe. The German campaigning organisation
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