Is there still time to take advantage of the ‘cash for appliance’ program?
The Cash for Appliances program followed closely behind the Federal Government’s “Cash for Clunkers” program. Funds were granted to consumers who purchased more energy efficient appliances as part of the President’s economic stimulus bill. Unlike the clunkers program, this one wasn’t designed and administered by the feds who set aside $300 million to implement it. Participants who got the largest possible share of the rebate pot were the ones who took the time to research and understand what their particular state, retailer, local utility company and new-appliance manufacturer were offering.
Six U.S. territories were grouped with all fifty states to take part in the program. Each had exactly the same amount of money equaling roughly one dollar per resident. This means that no one state was more important than another was. Each state individually had the chance to design state administered programs that were within the general Federal Government guidelines. However, an equal starting point did not insure that all results would be the same. The program was unenthusiastically received in some states, while in others, their rebate budget was exhausted within hours. In some states, the program is still open and will remain so until the funds are exhausted.
It was surprising to learn that, according to a state-by-state analysis, the program’s popularity had little, if anything, to do with the average price of electricity.
Analysts concluded that consumers were not particularly concerned with how much money they would save over the long-term. If they had been, the states with the higher priced electricity would have drained their rebate funds more quickly than those with less expensive electricity.
It turned out that states offering smaller rebates on more appliances ended up using up their funds faster than states that offered greater rebate amounts for fewer types of appliances. This could imply that rebates did not successfully entice consumers to buy the targeted Energy Star appliances. It seemed, instead to catch the attention of consumers who were already planning to purchase appliances.
In judging whether or not the program was an overall success, it has been determined that when the goal of a program such as this is to encourage consumers to make better choices, just giving them a reason other than rationality is much more effective. Somehow, enticing them to behave well should always be an important consideration for policymakers who are interested in sparking a change in behaviors in order to positively impact the country.
About the author:
Tina Smith has been working on ForeclosureWarehouse.com studying the foreclosures market, helping buyers on the finer points of foreclosed homes
