Scrapping for clean air: Emissions savings from the BC SCRAP-IT program

•We analyse BC SCRAP-IT (British Columbia׳s innovative Accelerated Vehicle Retirement program).•We combine data from British Columbia׳s AirCare emissions testing program with data from BC SCRAP-IT.•We find that BC SCRAP-IT significantly reduces automobile emissions.•On average, emissions reductions per vehicle are equivalent to a benefit of C$566, and the average program payout is C$ 886.•We suggest options to improve the efficiency of similar AVRP programs.

British Columbia׳s innovative Accelerated Vehicle Retirement program (BC SCRAP-IT) offers a unique set of incentives which are aimed at achieving a high level of emissions reductions. The program supports alternative forms of transportation: public transit, membership in ride-share or car-share programs, and/or the purchase of a bicycle. However, it is not known whether the program constitutes an efficient allocation of government funding, or how the scheme compares to more basic programs offering only cash subsidies. Using a novel dataset combining data from BC SCRAP-IT with British Columbia׳s AirCare emissions testing program, we find that BC SCRAP-IT results in substantial emissions reductions and that this type of incentives scheme compares favourably with previous subsidy-only schemes. On average, emissions reductions per vehicle are equivalent to a benefit of C$566, whereas the average program payout is C$886 per participant. We discuss policy implications and suggest a number of options to improve the efficiency of AVRP programs.