Critic hits out at car scrapping scheme

This BBC article looks at a new ‘car scrapping scheme’ from the British Government.

The idea has already been tried (successfully??) by the German Government. In it, people who own old, polluting cars are to be offered money by the Government to help them buy new, less polluting cars.

Read the article and answer the following questions:

1) Briefly explain the idea behind the original German ‘car scrapping scheme’
2) What information can you find that suggests that the German ‘car scrapping scheme’ was a success or a failure.
3) What economic terms would you use to describe George Monbiot’s argument that the scheme is…
“…an expensive way to cut carbon emissions "especially as there is a limited pool of money from the state. Money should be used to the best possible effect if we are trying to reduce the impact on the environment," he says.

"And that means as much carbon cut as we can for every pound that we spend."

4) How could you use this article to describe the TRUE cost of production (hint – define social costs and social benefits)