JUL
6

New Products and Meeting Consumers’ Expectations

 

There is no doubt that the government sometimes needs to push industry to adopt new standards that it might not otherwise adopt for the public good.  Efficiency standards are, perhaps, one of the best examples of such regulations.  But in setting standards, it is important that the government not push so hard that the technology is not ready or available for the market.   Doing so can turn consumer interest into consumer frustration, stigmatizing new technology even when it improves and really is ready for prime time.

Last week the President and Secretary Chu announced the issuance of new regulations mandating the efficiency of light bulbs.  Among the bulbs covered by the new regulation are the standard indoor parabolic flood light used on millions of recessed lighting fixtures in homes across the country.  (The technical designation of the blub is the BR-40.)  At the moment, the primary replacement for the standard incandescent flood light bulb is a compact fluorescent bulb.  The bulb, however, has several drawbacks when compared to the models it replaces.  First, the bulb cannot be dimmed.  Even those that claim to be dimmable do not dim well and do not dim below a certain level of light, below which they simply switch off.  Given that a substantial percentage of the installed recessed lights are installed on dimmers, this will result in a reduced level of functionality to the frustration of many consumers.  Second, the bulbs do not fit in all existing fixtures.  In response to an inquiry, a representative of the lighting efficiency program at DOE stated that new bulbs may not fit in all existing fixtures, in which case one may need new fixtures to accommodate new bulbs, an expensive proposition at best.  These problems are in addition to issues with all CFLs, which are that the color of the light is sometimes difficult to match to existing bulbs and that the bulbs often emit a buzzing sound that can be distracting.

It remains to be seen whether there will be consumer acceptance of the replacement product, or, as with CFL’s first introduction to the market over a decade ago, whether substandard performance will undermine consumer acceptance.  Whatever happens may provide a useful lesson for introduction of other new technologies in the energy and environment space, including plug-in hybrid and pure electric vehicles.

 

 

 

 

 

 

 

 

Political Roundup
August 27, 2010
The Clean Energy Race
August 24, 2010