The Consumer Electronics Association (CEA) released a report that says consumers and businesses in California will suffer economic harm under the California Energy Commission’s (CEC) proposal to set limits on TV electricity usage. The study was commissioned by CEA and conducted by economic consulting firm Resolution Economics LLC.
"The consumer electronics industry is committed to achieving energy efficiency in ways that benefit consumers and inspire innovation," said Doug Johnson, senior director of technology policy for CEA. "The CEC’s proposal to eliminate consumer choice and remove 25% of televisions from the market is a job killer and does not benefit consumers."
The CEA report says the CEC proposal will have negetaive impacts.
• US$50 million and 4600 retail jobs will be lost in California, CEA says, as a significant share of TV models will be removed from store shelves, driving consumers to online and out-of-state stores to buy the TVs they want.
• Consumers who currently choose energy efficient TVs pay, on average, $167 more for Energy Star qualified TVs, according to Best Buy. But rather than allow consumers to make that choice, CEA says the stringent CEC regulations will force all Californians to buy more expensive TVs that meet state-mandated technical specifications, resulting in higher prices for all TVs.
• According to CEA, sales of liquid-crystal display (LCD) TVs measuring 30-34 inches rose 70% in 2008, but 83% of LCD TVs measuring 24-34 inches that meet Energy Star specifications will be eliminated under the 2013 standard.
• Additionally, CEA says, 80% of current 35-39 inch LCD TVs and 100% of current plasma TV models larger than 60 inches will be eliminated under the 2011 standard.
• According to CEA, removing TVs from the market decreases competition among brands, reducing innovation of new features and technologies. New product developments such as 3D-HDTV and Internet-enabled TVs could be significantly impacted or delayed to market due to concerns about meeting the CEC’s arbitrary limits.
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