Governments must play a fundamental role in this process, as many market imperfections exist that are a consequence of a lack of political will to develop efficiency as well as a lack of appropriate fiscal and rate structures. The main reason identified in the Fourth Assessment Report (AR4) of the Intergovernmental Panel on Climate Change (IPCC) is that the costs of further EE are expected to grow in the longer term, while those of low-carbon energy sources are projected to decrease (Urge-Vorsatz and Merz, 2009). In Italy, the incentive is €1,500 for a car over 10 years old that is replaced by a new car with emissions of less than 140g/km. Germany provides €2,500 if the purchaser deregisters a vehicle that is older than nine years, whereas Spain provides an interest-free loan. In the Netherlands, the Government introduced a scrap premium of between €750 and €1,750, with a total budget allocation of €85 million. Rebate applications worth $2,877 billion were submitted, slightly below the $3 billion provided by Congress to run the programme.