The person who calculated this bit of information is now and has been aprofessor at The University of West Virginia in Morgantown for the last forty some years.
- A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year.
- A new vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons of gas a year.
- So, the average Cash for Clunkers transaction will reduce gasoline consumption by 320 gallons per year.
- The government claims 700,000 clunkers have been replaced so that’s 224 million gallons saved per year.
- That equates to a bit over 5 million barrels of oil.
- 5 million barrels is about 5 hours worth of US consumption.
- More importantly, 5 million barrels of oil at $70 per barrel costs about $350 million dollars.
- So, the government paid $3 billion of our tax dollars to save $350 million.
- We spent $8.57 for every $1.00 we saved.