CD Howe Institute recomends changes to Canada's ecoAuto program
The C.D. Howe Institute is a Canadian think-tank that has taken a look at the ecoAuto program introduced by the government there earlier this year. The controversial program created a sliding scale of rebates and taxes based on new vehicles fuel consumption. Buyers of more efficient vehicles got rebates from the government while those who opted for gas-guzzlers had to pay extra taxes. The C.D. Howe study supported the premise of using market incentives to get people to move to more efficient vehicles. The problem is the way the government implemented the program. There was little consultation with automakers and no phase in period for the program. However, the biggest issue with the program is the arbitrary nature of the thresholds. Cars that get mileage better than the threshold qualify for a rebate while those that fall below get nothing. A car like the Honda Fit that just missed the threshold may get real world mileage similar to a Toyota Yaris that did qualify but got no rebate. The rebates should be proportional to the mileage ratings to make it more fair. The full report is available as a PDF at the read link.
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[Source: C.D. Howe Institute]
Reader Comments (Page 1 of 1)
Dad 5:45PM (11/25/2007)
". The problem is the way the government implemented the program. There was little consultation with automakers and no phase in period for the program"
Comment: What would you expect? When folks with no expertise are in charge, the results are generally abysmal. The Canadian Government did it alone, and the result was a mess. Is this news to anyone?
Bob
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Snowdog 6:03PM (11/25/2007)
CDH is essentially an industry friendly think tank. So of course they follow the industry line on this one.
The hard nature of the thresholds forced honda to actually improve the fit to qualify. Soft threasholds would have done nothing.
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Domenick 6:18PM (11/25/2007)
Here's a headline, "I recommend changes to the C.D. Howe Institute."
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Dad 7:23AM (11/26/2007)
I found this observation about one Candian Official.
I could not agree more with the comment "After a few years in office, a sense of entitlement often takes over."
"http://www.edmunds.com/insideline/do/News/articleId=123645"
MONTREAL, Canada — The Canadian Gazette newspaper called the minister's tacit approval of her driver's speeding "limousine syndrome" and commented, "After a few years in office, a sense of entitlement often takes over." The Quebec premier, Jean Charest, said he is standing by Boulet and called her "the one to guide" speed-limit legislation now and in the future.
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Domenick 10:34PM (11/25/2007)
That would be the Montreal Gazette talking about a provincial cabinet minister. What does that have to do with the CD Howe Institute or the federal "feebate" program they made recommendations about?
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