French Government declares car 'feebates' system a success
Wed 20 August 2008
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The bonus/malus or feebate system which has been introduced in France to encourage car buyers to make 'greener' purchase choices has been declared a success by the French environment minister. Encouraged by the early indications from the scheme, Jean-Louis Borloo has called for the system to be applied to other types of products - including televisions, computers, tyres and some electrical products.
According to official figures there has been a 45% increase in sales of vehicles consuming less than 130g/km CO2 in France in the eight months since the scheme was introduced. In that time, the average CO2 emissions from new cars sold has fallen by 9% (8g CO2/km). There was, however a surge in purchases of 4x4s between the scheme's announcement and its introduction.
The highest bonus for the buying the lowest carbon car is 5,000 Euros with the highest malus (extra tax) is 2,600 Euros.
The cost to France's Budget is reported to be around 140 million Euros because of the greater than expected impact of the scheme.
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