Sweden Introduces “Green Car” Cash Bonus

by Celine Ruben-Salama, New York, NY on 04. 2.07
Business & Politics (news)

swedish_green_cars_2.jpg

Congratulations Swedish car buyers. Thanks to a "new “green car” bonus program that went into effect yesterday April 1st, 2007, those who buy a new eco-friendly car can expect SEK 10,000 ($US1,400) in cash from the government. Scheduled to run until the end of 2009, it is estimated that sales of green cars will increase at a rate of 10 to 15 percent per year.

In order to qualify for the bonus the car must consume less than half a liter per ten kilometers (47 mpg US). By no means limited to hybrid or bio diesel vehicles a conventional gas-driven car can also qualify for a cash bonus. Based on fuel consumption standards, a broad range of cars qualify for the bonus. In fact, more or less all car makers have at least one model that meets the Swedish criteria for classification as a green car.

In 2006 39,000 green cars were registered in Sweden, 9,000 by private citizens. Sweden’s Minister of the Environment Anders Carlgren says of the incentive program, “we wanted to use more carrot than stick.” The Swedish government has set aside SEK 250 million (US$36 million) for the program. If needed, that budget will be increased Carlgren assures. :: Green Car Congress

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Comments (4)

Do you know if there is a similar, and larger bonus for folks who don't own a car, to encourage more sustainable transportation solutions?

jump to top Turil [TypeKey Profile Page] says:

There is no bonus for folks who don't own a car.

jump to top Lars says:

Unless you get 10k every year you own the car, I don't see this having a major impact. Of course you get free parking in major cities (for now) and better gas mileage but the price of owning a car in Sweden is ridiculously high already (well...still better than neighboring Denmark). I would much rather see them invest that money into parking lots with recharging stations in the cities. People with houses can outfit their garages with anything they want, but I don't think my city would like high voltage cables running from my 4th floor apartment down to an electric vehicle on the street.

I live in Sweden. I drive a 20yo car with bad gas mileage about 300km every weekend. Not because I can't afford a hybrid or EV, but because I can't charge it (legally).

and to (partially) answer your question, the city bus system we have runs on natural gas, and (some) of the electric trains' power is provided by renewable sources. And the bonus for not owning a car is not having to pay the high tax (both road and petrol...upwards of 70%!), insurance, etc.

jump to top LegStrap says:

Even though this might seem as a good sollution in environmental issues it still only affects those who are able to afford a new car. The whole idea of giving a cash refund to someone who allready is wealthy enough to buy a new car is only one of many things the right-wing goverment of 2006 is planning to do.
It is the same narrowminded politicians that wants to sell the municipally run public transport systems to private companies and by doing so pushing the bus fares upwards. Eco-friendly cars are good, no doubt. But public transport is better. As long as the right-wing parties are allowed to rule Sweden our whole ecological progress will stagnate. The capitalist parties in Sweden has promised nothing but populistic alternatives that at first hand seems good. But think again, even with eco-friendly cars, how will a heightend consumption of vehicles ever be eco-friendly?

jump to top Edvin says:

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