Government Making Appliances Costlier and Crummier in the Name of Going Green

Prior to the 20th century, families commonly used washboards to wash clothes, cooked over a coal- or wood-fired stove, and had to rely on iceboxes for food storage. Inventions like the refrigerator, vacuum cleaner, microwave, and washing machine became signs of human progress. What was once grueling, manual labor became much more manageable. These appliances saved people time, helped improve health and hygiene, and raised the standard of living for millions. It was only a matter of time before government regulations began to stifle progress for appliances. 

A recent report authored by Senior Fellow Ben Lieberman from the Competitive Enterprise Institute (CEI), entitled Free the Appliances, provides a compelling examination of how these regulations evolved from responses to the oil crises in the 1970s into the cumbersome regulatory framework that they are today. As we will see shortly, this CEI report details how these appliance efficiency standards have become a nightmare for the everyday American. 

CEI emphasizes how this regulatory framework expanded far beyond its initial energy-saving intentions, evolving into a broad set of environmental mandates that prioritize climate goals over consumer interest and practical appliance performance. I have covered two such instances previously here on Libertarian Jew, both of which were from the Biden administration in 2023.

A proposed gas stove ban would have limited consumer choice, imposed unnecessary restrictions on appliances that are efficient and cost-effective, and undermined individual freedom by dictating what homeowners could use in their own kitchens. Biden's water heater standards are similarly perturbing. They raise upfront costs significantly for consumers, especially lower-income households. Meanwhile, these standards offer minimal energy savings and do not provide a fair return on investment (ROI). While these are some of the more high-profile instances, CEI covers other instances in which consumers have been subjected to the unintended consequences of these appliance efficiency standards:

• Dishwashers: To comply with water-use restrictions, manufacturers compensate by increasing the cycle time. This regulation costs consumers more than $8 million a year while providing an annual energy savings of $17. Meanwhile, the standards result in about an extra hour per load while compromising the wash quality.
• Refrigerators: Since DOE regulations began, the average life of a refrigerator went from 19 years to 12 years, mainly due to the energy-saving features.
• Furnaces: Because of these standards, the average furnace costs an extra $1,500-$3,000. The DOE calculates a lifetime energy savings of up to $1,635 over 21 years. The issue there is the average furnace lasts 15-20 years. Saving money over a lifetime is far from certain. Even if those savings materialized, the high upfront costs can strain household or business budgets before those savings are realized. 
• Air Conditioners: Trying to recoup the loss of upfront costs for efficiency standards on air conditioners is even worse than with furnaces. A compliant air conditioner unit costs $1,500-$5,000 more on average. For hot/humid areas like the Southeast, the DOE calculates a savings of $1,853 for an ENERGY STAR unit and up to $6,724 in the best-case scenario. The problem is that the calculation is for 18 years, but the average A/C unit lasts 10-15 years. In the Southeast, it is theoretically possible, but far from guaranteed, to get your money back in the long-run. For the rest of the United States, don't count on that net cost to be in your favor.  
• LED Lightbulbs: In 2024, DOE regulations increased efficiency requirements for LED and general service lamps. This is phasing out many current bulbs (e.g., incandescent) and forcing customers to purchase higher-cost alternatives. According to the DOE, the requirements will increase the average price of an LED bulb from $2.98 to $5.68 (p. 5-33). In turn, this can reduce product choice, cause compatibility issues, and disrupt the lightbulb market. 

Conclusion: The High Cost of Feel-Good Environmentalism

In summation, these appliance efficiency standards are a class example of feel-good environmentalism in which politicians and regulators feel virtuous but do little good for consumers or the environment. Whether it's a $5 LED lightbulb or an extra $3,000 for a furnace, these costs are significant and often fail to materialize in a meaningful way. Far from empowering the average American with choices or savings, these regulations are a way to check of a feel-good box while ignoring real-life consequences. 

Moreover, these regulations can compromise quality, whether it is refrigerators that wear out faster or dishwashers that take longer to clean. The promise of a greener future comes at the expense of functionality and consumer choice. Consumers are forced to trade off reliability and performance for regulatory mandates that cannot guarantee significant savings in the long run. 

As I have brought up with plastic straw bans and recycling, these efficiency standards are little more than environmental brownie points created to support a certain moral high horse. If all countries opted to adhere to the Paris Climate Agreement, it would have only reduced global temperatures by 0.2 degrees Celsius. This is my way of saying that every American adhering to these efficiency standards would do nothing of statistical significance to slow down increasing global temperatures. If overpriced appliances is all consumers get out of these regulations, then the only thing "green" happening is the money going out of our wallets as we pay more for these half-baked regulations.