Over a month into its existence, the Car Allowance Rebate System, known colloquially as “Cash for Clunkers,” has been one of the U.S. government’s most successful stimulus programs in recent history. More than 250,000 cars were sold in one week alone, providing a much needed boost for the beleaguered car industry, while at the same time slightly reducing our dependence on foreign oil because the new vehicles purchased had an average 61% increase in fuel efficiency, according to the Department of Transportation.
After the initial $1 billion for the program was exhausted by July 30, 2009, Congress scrambled to approve an extra $2 billion to keep the program afloat. The immediate and influential effect of the “Cash for Clunkers” program on consumer and government spending stands in stark contrast to the lack of spending in the energy industry so far this year. Under the $787 billion American Recovery and Reinvestment Act, signed into law in February, more than $61 billion was entrusted to the Department of Energy to “jump-start our economy and build the clean energy jobs of tomorrow,” a White House press release stated.
Given the sheer size and complexity of the energy sector in the United States as well as the litany of red tape and regional monopolies, significant initiatives have proven difficult to enact on a national scale. However, two energy initiatives currently gaining support could stimulate the economy while providing an immediate solution to some of the country’s energy issues: the Pickens Plan and the Department of Energy’s plan to install smart meters in homes across the country. It is important to monitor the success of these initiatives because the immense scope of their aims will create great windfalls for companies catering to these new markets. Click here to read the full article.
Companies that stand to benefit from these energy initiatives include: Clean Energy Fuels Corp. (Nasdaq: CLNE), TransCanada Corp. (NYSE: TRP), Enbridge Inc. (NYSE: ENB), Google Inc. (Nasdaq: GOOG), General Electric Co. (NYSE: GE), Cisco Systems Inc. (Nasdaq: CSCO), Itron Inc. (Nasdaq: ITRI), and ABB Ltd. (NYSE: ABB).
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