Stimulating the economy?

[rov1200]

With sales of new cars in the doldrums whilst still trying to tackle global warming why is this French idea not used to tackle the two problems?

http://www.ambafrance-uk.org/Bonus-Malus-Franc e-encourages.html

[Oneeyedvic]

We already have Road Tax incentives (paid yearly / 6 monthly) to buyer 'greener' cars.

[coccinelle]

The problem in France is that there have been so many people trading in old cars and buying new 'green' cars but a lot less people have been buying cars which pollute that this is costing the government a lot of money. The Bonus/malus was hoped to finance itself.

[rov1200]

The road tax may partly help the past situation but a new stimulus is required on a grander scale. Only today people are being laid off for as long as 9 months but producing nothing although paid for a portion of their salary. Other motor manufacturers are laying off staff for 2 or 3 months hoping for a short end to the recession.

Your statement that people have been trading in old cars to buy green show that this does work. As many people trade in their old car every 3 years this would be an added incentive. If we are willing to pump billions in our flagging economy surely it would be money well spent.

[rov1200]

This French scheme was not intended to tackle the recession as this idea occured long before but only for green issues. This makes the scheme doubly useful. Obviously it will come at a price and not be revenue neutral.