Appliance rebates will waste taxpayer money
By Ryan Jaroncyk | 01/15/2010 | Energy and Water | 2 CommentsAccording to two University of Delaware economists, the $300 million rebate and energy-saving program will likely waste money and potentially even increase energy usage. Focusing their analysis on refrigerators, Abrams and Parsons calculated that the $50-$200 appliance rebates will produce a net loss for taxpayers. And in some cases, consumers will expend even more energy utilizing older models for extra capacity, since they do not have to be salvaged, unlike the ‘Cash for Clunkers’ program, which is reported to have wasted $825 million.
The economists recommended lowering the rebates to $30 in order to stimulate the same consumer response, but at a much lower taxpayer price tag. This analysis would appear to bolster government critics who claim that taxpayer handouts such as ‘Cash for Clunkers’, ‘Cash for Appliances’, and other well-meaning programs often fail to achieve their desired objectives, while bilking the taxpayer and adding to the budget deficit.
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2 Comments
W. E. Messamore
01.16.2010
We could just dismantle big government programs that have huge carbon footprints (like say the war in Iraq) and return that money to the taxpayer. That would cut back on our environmental impact and give needed boost to an ailing economy.
If we could cut the payroll tax completely, it would spur a lot of job growth by encouraging employers to hire on a few more people. By simply lowering spending levels to the point they were at Pre-Bush (i.e. Pre DHS, GWOT, and wars in Iraq / Afghanistan), we could accomplish this.
And guess what the carbon footprint and energy usage of all those planes, helicopters, boats, and trucks is? A lot more than my refrigerator, I can tell you that much!
Anonymous
01.21.2010
I remember turning over an old refrigerator to PG&E in return for a rebate on a new one. They carted the old one away, which certainly prevented me from re-using it. Seems like that program would make sense in light of the uneconomical and environmentally unsound contined use of older appliances.