Re-thinking Cash for Clunkers

The model that I created for my master’s thesis was recently published online so you can actually play around with it (using iseesystems NetSim software).  Check it out at their blog:

and then check out the model:

By combining a two-way price signal – getting people to buy ‘clean cars’ instead of ‘dirty cars’ while convincing them to get rid of their polluting cars – we may see pollution decrease dramatically.    However, its a difficult money situation to manage – as the feds are figuring out for themselves!