Washington, D.C. – A new study shows that the U.S. “Cash for Clunkers” program improved the fuel economy of all vehicles purchased by 0.6 mpg in July 2009, and by 0.7 mpg in August 2009, according to a report by the Green Car Congress.

The study, by Michael Sivak and Brandon Schoettle at the University of Michigan’s Transportation Research Institute, calculated the expected fuel economy of purchased new vehicles without the program, and compared it with actual fuel economy observed for the same months.

The Car Allowance Rebate System gave buyers a rebate when they traded in a vehicle that had a fuel economy of 18 mpg US (13.0 L/100 km) or less, and be less than 25 years old. Overall, about 690,000 vehicles were purchased under the program, out of a total of about 2,260,000 vehicles sold in July and August 2009.

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