Today’s Calamity: Energy Efficiency is Good – Except When It’s Not

Nicolas Loris / September 03, 2009

Just as renewable energy can be a good thing if the market can provide it at an affordable rate, products designed for greater energy efficiency is a good thing. But not when the government gets in the way. Federal laws dictating how much energy home appliances are allowed to use have frequently harmed consumers, and the Waxman-Markey bill introduces a host of new ones.

Improved energy efficiency is a worthwhile goal, but not when Washington tries to mandate it with arbitrary requirements. Consumers who think the resultant energy-efficient appliances will save them money in the long run may be disappointed. These standards almost always raise the purchase price of appliances, in some cases to the point that the extra upfront costs are never recouped in the form of energy savings. For example, the Department of Energy conceded that its most recent air-conditioner standard would be a money loser for many consumers, but went ahead with it anyway. (more…)