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Monday, February 26, 2007

Government and technology - don't try to pick winners

This excellent post on Slashdot reminded me why letting government pick technology winners is dangerous. GE has just announced a more efficient incandescent light bulb, hoping to reap the benefits of increasing consumer focus on energy efficiency with an accepted technology. The bulb will allegedly approach the efficiency of a compact fluorescent over time.

So, instead of the recent proposals to ban the incandescent light bulb, an energy-conscious governing body could simply ban less efficient bulbs (as measured by lumens produced per watt consumed) or tax bulbs on a per watt basis. This lets the market help filter out the most effective way to meet the energy efficiency goal.

Lesson: let government set the goal and structure the market, not pick the market.

Other examples: renewable fuels mandates instead of ethanol mandates; renewable electricity mandates instead of wind mandates; higher CAFE standards instead of banning Hummers (though I'd be okay with banning those things anyway :-)

Update 2/27/07
: Energista picked up the same story and came to the same conclusion - efficiency standards are better than bulb bans.

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