Texas has taken a step toward reducing the cost of federal energy efficiency mandates. State lawmakers passed and Governor Rick Perry signed a bill that exempts any incandescent light bulb manufactured and sold in Texas from the 2007 energy independence act, meant to phase out incandescent light bulbs.
The reason that this is important is due to the fact that most federal energy efficiency programs are designed to increase the cost of energy and thereby decrease the use of energy. The federal light bulb mandate is no different. Look at the cost of the energy efficient bulbs compared to incandescent bulbs: three dollars compared to thirty-five cents.
The federal mandate does not actually “force” anyone to use the energy efficient light bulbs or ban incandescent bulbs. However, it does require all incandescent light bulbs to be twenty-five percent more efficient, which will increase the costs of the bulbs and thereby force them out of the market.
The Foundation has documented the problems with government mandated energy efficiency programs.
The claim that Texans benefit from a state-mandated “increase in energy efficiency services … and a decrease in overall energy consumption” demonstrates a fundamental economic misunderstanding. An uncompensated decrease in a person’s consumption of any economic good is a cost, not a benefit.
Only time will tell what the result of this measure will be, but Texas’ efforts to control its energy usage will help it control its economic future.
-Josh GrimesResearch Fellow, Center for Economic Freedom