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Monday, July 6, 2009

Efficiency Standards, Unfunded Mandates. . . and Success

Front page of the Business section of the New York Times today notes that old incandescent bulbs aren't fading away; they're. . . evolving.

Why is that? Pressure from CFLs is one piece. But the real push came from the Big Bad Gummint, in the Federal Energy Bill of 2007.

The feds set energy efficiency standards that appeared to make the demise of the incandescent bulb inevitable--starting in 2012, tightening the final screws in 2014. Two years later (and three years early), there's an incandescent bulb on the market that already meets the standard.

This is interesting in that it belies the constant yammering on the right that gummint has no place “interfering in the market.”

Okay, so what what you want is the withdrawal of all subsidies, giveaways, and tax incentives given to the hydrocarbon industries, right?

Hello? Hello? He hung up. I wonder why he hung up.


It's a weird kind of adolescent-doesn't-want-to-clean-her-room argument: “I'll do it as soon as you stop telling me to do it--in my own way, in my own time!”

But when you come back the next day, the pile of damp towels on the floor is even higher.

I don't think regulation is The Answer. But when they talk about “market forces,” a key part of what that means is action to define, and consistently enforce, the parameters of what is and is not acceptable, in both commercial and environmental terms.

I had thought the 2007 bill banned incandescents (and I thought that was the way to go; I stand corrected). Turns out, instead, the bill did what the free marketeers always say they want: set the bar and let the market compete to produce cost-effective solutions.

It has started to do so. Doubtless, we will now begin to see Republicans, en masse, lauding freemarket greentech solutions.

Hello? Hello. . . ?

In other news: I wonder how this happened. It's a mystery. . .

4 comments:

Diggitt said...

I think the problem with "market forces" (and the quotes are there for irony) is that free-market folk hardly ever want a true free market. They want subsidies for stuff they've invested in.

A genuine free market -- of which we see very few -- probably really does what they say it will. Encourages innovation etc.

Unfortunately, despite the fact that for many people, energy issues are fairly new, they've been in the mind of business for decades. There are many places where subsidies totally distort the energy marketplace.

Subsidies for wind energy come to mind. If those subsidies were not there, would wind energy (especially in, for instance, the northeast U.S.) even have a pulse? It's the subsidies that keep it alive, not the reality. You could probably run a blog on that subject alone.

Hydrocarbonaholic said...

Right. "Free Market" is rhetoric (or rhetorical screen); what they really mean is something closer to what economists call "rent seeking," which is "let's you and me write some regs so I can just cash an easy regular check."

I *think* wind energy has reached liftoff and works with or without subsidy at this point (though subsidy impacts payback period). You're right; it would be interesting to look more closely at those numbers.

Genergize said...

Well, at least things are moving towards greener more efficient light bulbs. I think think that encouraging companies to produce greener products is good, but at the same time regulations do stifle the economy so you have to find the right mix.

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