I'll begin this discussion with a simple question. Which option is better for our environment, buying a brand new fuel efficient Prius, Insight, Etc. or driving around an old truck that gets 12mpg? The old truck every time.
Building new cars of any kind has damaging effects on our environment. Mining, plastic construction, rare metal extraction, etc. are all damaging our environment in various ways. In the case of hybrid cars, the metals that are used in the batteries (Nickel Hydroxide or Lithium-Ion batteries) are heavy metal and quite toxic. When mining these metals, especially nickel, runoff causes remnants to seep into the area causing irreversible damage.
Knowing this, shouldn't car companies be encouraged (offered incentives) to increase the amount of recycled material used in new car production or selling refurbished old cars and trucks?
I really like the refurbishing old cars method, because that's actually a method of reuse, much more effective than recycling. So by refurbishing old cars I mean restore the car to near factory condition while adding features than will help the car compete in the modern market. Features such as a modernized engine, gps technology, climate control, etc. I know there are already some small private companies which do this such as Icon, but why aren't major car companies doing this on a less luxurious and expensive scale? Probably because of the increased cost.
So this is where government incentives come in. Using these incentives to encourage older car refurbishing, we create job positions, an entirely new mass market vehicle line-up, and reduce the need for obtaining raw materials.
Personally I think older cars were built much with higher quality materials than today's cars and look gorgeous, so it's a plus for me that by encouraging restoration of these vehicles our country also reduces unemployment and environmental degradation.