Federal appliance standards – consumer friend or foe?

(external-resource, 31 Aug 2016) The Heritage Foundation recently posted an opinion piece on why the federal government should not be mandating energy efficiency standards. The authors suggest that the standards reduce consumer choices, have little impact on reducing greenhouse gas (GHG) emissions or increasing energy savings, and hinder innovation.

The authors argue that high energy prices will motivate customers to purchase energy efficient equipment and that the free market is enough to incentivize energy efficiency.

Let’s look a little more closely at the claims. Federal efficiency standards began in 1987, and since that time energy consumption of several major household appliances has dropped dramatically. The graph below from the American Council for an Energy Efficient Economy (ACEEE) blog shows the dramatic drop in energy consumption, especially for refrigerators and clothes washers.

The National Resources Defense Council’s (NRDC’s) analysis also indicates that by 2035 federal efficiency standards will be responsible for reducing total US energy consumption by 14% and for cutting 470 million tons of carbon pollution annually.

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external-resource, 31 Aug 2016: Federal appliance standards – consumer friend or foe?