Evaluation of Effects of "Cash for Clunkers"-like programs on car markets and macroeconomic situation
|Author:||Bc. Florian Fiebig|
|Year:||2016 - summer|
|Leaders:|| Ing. Vilém Semerák M.A., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||After the financial crisis in 2007-08, governments all over the world tried using several policies in
order to promote growth and stability for their economies. On July 1, 2009, the USA launched its
policy „Car Allowance Rebate System (CARS)“, commonly known as „Cash for clunkers.“ It was
a program designed to boost car sales, by giving the US residents an economic incentive swap
their old and economic inefficient cars for brand new models that are more fuel efficient as well as
produce less CO2. In the same year, Germany tried to promote growth and stability using the same
policy/program. However, this policy did not just had an impact on the German economy, but its
neighbors as well. In addition to that, it is interesting to find out if this policy was beneficial to
implement or rather harming the economy even further.
Although several papers conducted research on the effects of the cash-for-clunkers policy, I will
focus on the effects that the German policy had on the Czech economy with specialization on
ŠKODA car sales. In my thesis, I will try to analyse how strong the car sales were impacted by the
policy as well as if some of the hypotheses are valid.