Hardly More Than a Flash in the Pan - Evaluation Studies on Scrapping Premiums at a Glance

We provide an overview of studies on the effects of car scrapping and purchase premiums. These premiums boost car sales in the short term. In the medium term, however, hardly any more cars are sold. Many consumers would have bought a car anyway, would prefer to use the premium to buy one, or spend less money on other consumer goods after buying a car. The environmental impact of purchase premiums is unclear.