Scrappage program

Article summary

A scrappage program is a government incentive program to promote the replacement of old vehicles with modern vehicles. Scrappage programs generally have the dual aim of stimulating the automobile industry and removing inefficient, more polluting vehicles from the road. Many European countries introduced large-scale scrappage programs as an economic stimulus to increase market demand in the industrial sector during the global recession that began in 2008. Scrappage programs were touted with different names, mostly referring to an environmental benefit. The Vehicle Efficiency Incentive in Canada was based on fuel efficiency of cars. In Romania, this program was called "Rabla" (the wreck), and was launched by Dacia in 2000. In Germany, the economic stimulus program was called "Umweltprämie" (environmental premium) and in Austria "Ökoprämie" (eco-premium) while most of the public referred to it simply as "Abwrackprämie" (scrappage premium). Other countries have not tried to connect the program title with an environment aspect – still the Italian "Incentivi alla rottamazione" (scrappage incentives) and French " " (scrappage premium) require the new car to meet modern emission standards.…

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