If energy needs to be saved, there are good ways to do it.
                                                               Government product regulation is not one of them

Tuesday, July 5, 2011

Saving Energy in America

 
If there is a Problem: Deal with the Problem
From a pro-regulation viewpoint,
if energy use is such a worry, and suggested policies (summarized below) are rejected,
then gasolene, oil, coal, electricity, or products that use a lot of such energy, could simply be taxed to reduce their use, allowing cross-financed subsidies on alternatives to make them cheaper for consumers,
without affecting Federal or State (eg California) Budgets like today




The main message from politicians who are pro-regulation on buildings, cars, refrigerators, light bulbs etc is that "We must save energy and emissions".

Unfortunately, the energy savings from product regulations are much smaller than supposed, from rebound and other general effects, as research has shown
http://ceolas.net/#cc214x

There are also specific reasons why the savings are small,
such that say in the case of light bulbs the savings amount to less than 1% of US (or EU) energy use, as shown with US Dept of Energy and institutional EU statistics references on
http://ceolas.net/#li171x


But even if the savings were there...


The First Consideration:

Arguably there is no particular need,
for Government to impose energy saving measures on paying consumers, unless there is a society energy shortage.
Such a shortage could of course firstly be met by increasing relevant supply (renewable, low emission etc if desired), rather than by forcing citizens to reduce their energy use.
Besides, any actual shortage of oil or coal or gas raises their price and reduces their use anyway - without the need for Government intervention.
Emissions (not just of CO2) can be dealt with directly or by energy substitution.

As regards electricity use,
refrigerators, light bulbs etc don't burn coal and they don't release CO2 gas:
even if the savings figures from regulating such products are accepted, there are still many more relevant (as well as more significant) measures in generation and distribution as well as consumption, to reduce energy use and electricity waste.



If the need is nevertheless felt to impose energy reducing policies,
then increasing free market competition should be the first choice:

Competition between utility companies, industries and businesses means that they themselves strive to keep down their costs - including energy and electricity costs.

Also, competitive pressure means that they are more likely to engage in market research to satisfy consumers in terms of giving good service at a good price
- including that they will provide good energy saving products at lower prices that also save people money in their usage, as has happened throughout history, without Government intervention.




Moving On:

Even if all that was rejected, then taxation is still better than regulation.

I am playing "devil's advocate" here, since I don't support this.
But let's say you are strongly pro-regulation because of the Great Need to Save Energy....

If energy use is such a problem - then simulate a shortage:
Government can simply put an import duty on oil (also for national energy security reasons) or tax oil, gasolene, coal, electricity as required, to raise the price and reduce the use - instead of running round telling citizens what buildings, cars or light bulbs they can or can't buy and use.


"Hey Man, in America we hate taxes!"
"Hey Man, that means the rich can pay and pollute, unlike the poor folk!"


People are not necessarily just "hit by taxes",
since the taxes help fund subsidies for alternative (and low polluting) energy sources - making them cheaper than before.
A bankrupt state like California,
or a near bankrupt country like the USA,
can't just go on with massive upfront costs for "supposed energy savings down the line"
(savings arguably not there anyway, for reasons described on the website)


"Hey Man, still no way that a politician can tax gasolene, or electricity use!"

Well, then one can move on to product taxation alternatives:
While being petty and with similar disadvantages to product regulations,
importantly it keeps choice yet gives Government valuable income at the same time:
Remember that energy demanding products are often cheaper to begin with,
and (as with light bulbs) may be replaced more often, giving high tax revenue
even on decreasing sales.
2 billion annual US sales of relevant light bulbs shows a massive Federal or State Government tax income potential - and that is just light bulbs.

Again, taxing rather than banning certain building construction or certain pick-up trucks or certain electrical products - all which may have usage advantages for consumers -
also allows, as before, for cross-financed energy saving alternatives to be sold cheaper, equilibrating the market
- so "people are not just hit by taxes" in keeping their freedom of choice.

Notice therefore how the talk that
"Markets fail, people don't buy expensive products even if they save money in the long run"
fails twice over:
- Firstly in the market sense, where people do buy expensive alternatives if they are good enough and marketed properly ("Energizer bunny" commercials for batteries, or similarly with washing up liquids etc that "cost more to buy but save money in the long run"),
- Secondly in taxation, a worse alternative, but that also can reduce or cancel the price differences to even out the market.



Even if one accepts "a great need to save energy",
pro-regulation Government politicians therefore lack
not just understanding,
not just imagination,
but also consideration, for the citizens they serve.

As said,
If there is a Problem: Deal with the Problem...


Thursday, June 30, 2011

And Pennsylvania:
Local repeal bill under way...

 
As communicated by the office of Pennsylvania House Rep. Matt Gabler, he and Rep. Matt Baker are currently looking for co-sponsors for a bill to locally repeal federal light bulb legislation, becoming the 7th state to seek to do so (see updates regarding other US state bills).

In the first instance they seek to
"memorialize Congress to make necessary mandate repeals before the light bulb related provisions of the Energy Independence and Security Act takes effect"

However, to ensure as far as possible the continuation of local manufacturing and freedom of choice for local consumers, a local repeal ban bill will also be launched.

More on this:
Rep Gabler audio statement (mp3 June 3, 2011)
Youtube video interview (uploaded by Rep Gabler on June 28, 2011)



Comment
As mentioned on the Michigan launch post, state legislators are aware of the inter-state commerce law and seeking to defend the rights of intra-state commerce.
Clearly, out-of-state visitors would come and buy these bulbs, but that is still hardly inter-state commerce unless they then re-sell them locally in other states.
That said, since regular incandescent light bulbs are small, cheap, and weigh little,
federal regulators are clearly going to see intended regulation effects circumvented.
The vigor with which they choose to pursue local state legislation may also be influenced by the Canadian Government proposal to delay a ban implementation to 2014,
also because alternative local state US purchases would benefit the US economy more
(remembering that around 2 billion incandescent light bulbs are annually sold in the USA
on 2008-2009 figures)

The second point here is that Pennsylvania, like South Carolina, and unlike say Texas,
already has current incandescent manufacturing at the Osram-Sylvania factory in St Marys (of which Matt Gabler is the State House representative).


The Sylvania site states that the factory
"manufactures nearly 2 million incandescent light bulbs each day, in 1,700 varieties and packages"
Attempts to safeguard some of the 265 jobs involve a conversion to making Halogen type less energy using incandescents - but these are far more expensive and less popular than regular simple incandescents, giving much lower sales versus more energy saving CFLs or LEDs (which of course is the ban intention), and, as set out on http://ceolas.net/#li01inx, all known incandescents will be banned by 2020 anyway: All of which hardly saves those jobs.
On the contrary, the continued sales of cheap bulbs would likely give more local jobs,
with all the extra purchases from out-of state visitors too.

Of further note is that the only Democrat in the US Congress sponsoring any of the federal light bulb ban repeals is Pennsylvania Rep. Tim Holden, alongside Republican Reps Tim Murphy and Glenn Thompson (St Marys District) and Senator Patrick Toomey.




Tuesday, June 28, 2011

"Heat Ball" Decision Looming in Germany

  // Also a July Update on this
(added: A lot of later updates in this blog, search on "heat balls".
At time of this edit, last update February 2012) //

Siegfried Rotthäuser and friends in Germany have imaginatively tried to get round the European ban on regular simple incandescent bulbs by marketing them as "Heat Balls" (more).
This is a sop to the frequent ban defence relating to the fact that incandescent light bulbs give out over 90% of their electrical energy they use as heat (nevertheless being much easier to manufacture, when great brightness is required, compared to CFLs or, even more so, compared to LEDs).

The case has gone to the courts for decision, expected 26 July 2011, see announcement (pdf, in German)


Comment
Interesting legal argumentation might be expected in court...
a heat ball or rather "heat bulb" market idea to be followed in the USA and elsewhere?

As for light bulb heat "waste", it is often conveniently forgotten that CFLs and LEDs also convert most of their energy use to heat, although the heat is internalized more - in the case of CFLs leading to a recognized fire risk.
More on incandescent light bulb heat, and it's possible benefit here (http://ceolas.net/#li6x)

Monday, June 27, 2011

Michigan Launches Ban Repeal Bill

 

// Also a July Update of this //


More states are waking up to the fact of the looming federal ban...

As informed by Rep. Tom McMillin and the Right Michigan organization,
he has launched a bulb ban repeal bill in the Michigan House of Representatives with 27 early co-sponsors, although as yet unreported either by news media or Michigan Legislature press releases.



Bill extract:

The legislature finds all of the following:

(a) An incandescent lightbulb that is manufactured in this
state without the inclusion of parts, other than generic or
insignificant parts, imported from outside of this state and that
remains within this state has not entered into interstate commerce
and is not subject to congressional authority to regulate
interstate commerce.

(b) Basic materials, such as unmachined and unshaped steel and
glass, are not incandescent lightbulbs and are not subject to
congressional authority to regulate incandescent lightbulbs in
interstate commerce in as if the basic materials were actually
incandescent lightbulbs.

(c) Congressional authority to regulate interstate commerce in
basic materials does not include authority to regulate incandescent
lightbulbs manufactured in this state from those basic materials.


Comment
There are as seen issues of Federal v State regulation:
It played a part in the earlier veto by Arizona Governor Jan Brewer of their bill,
but subsequent bills in different states have taken that aboard,
and been phrased accordingly, at least in some cases after communication with the Attorney General's office.

News of the passing of the Texas bill into law was posted earlier.
Updates on other bills here (http://ceolas.net/#li01inx).