Swedish government adds more money for green car scheme

The Associated Press ,  Stockholm   |  Tue, 04/01/2008 10:23 PM

The Swedish government said Tuesday it was setting aside millions of extra dollars because of the success of a scheme to reward drivers buying environmentally friendly cars.

Since April last year, the government offered 10,000 kronor (US$1,400) to anyone who bought a green car, which has led to a 50 percent increase in their sales in the first quarter of 2008 compared with the same period a year ago. The government had expected only a 10 to 15 percent increase.

It has put aside another 240 million kronor (US$40.4 million) for the scheme in 2008 besides the 100 million kronor already earmarked.

"Sweden needs the car, but we should go after the emissions. The cash award has proven to be a very good way for motorists to quickly switch over to modern cars, which are better for the environment," Environment Minister Andreas Carlgren said.

Cars eligible for the award include gasoline-driven vehicles that release less than 120 grams of carbon dioxide per kilometer, electrical cars and vehicles running on alternative fuels.

The offer, which runs until the end of 2009, is part of the government's push to reduce carbon dioxide emissions. (****)

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