Dec. 6, 2007 France has created a new tax system that penalizes purchases of higher-emitting vehicles and offers bonuses on cleaner cars, Agence France Presse reports.

Beginning January 1, buyers of new cars emitting more than 160 grams of carbon dioxide for each half-mile driven will get slapped with a one-time penalty. The taxes range from 200 to 1,600 euros, depending on how much pollution the vehicle generates.

Buyers of greener vehicles could get as much as 1,000 euros depending on the car, with an additional bonus for scrapping their older, more polluting vehicle in the process. Buyers of the cleanest cars (such as electric vehicles) get a special bonus of 5,000 euros.

About a quarter of new car sales will net fines, and 30% will be eligible for bonuses, the French government estimates. It expects the program to pay for itself, with the money raised from fines covering the bonuses.