Green Money Saves The Environment And Helps The Economy

The "cash for refrigerators" and "dollars for dishwashers" program gave retailers and shoppers in the US much needed reprieve

. $300 million was allocated to this program on a national level. The aim was to rejuvenate the economy by creating jobs and reduce the country's carbon emissions. It was part of an $800 billion dollar economic stimulus strategy initiated by the Obama administration to pull the American economy back on its feet. "Appliances consume a huge amount of our electricity, so there's enormous potential to both save energy and save families money every month," said Department of Energy Secretary, Steven Chu. "These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy and create jobs."

Citizens lined up to sell older home appliances on rebates ranging from $50 to $500 for newer energy efficient equipment. To qualify for rebates, the consumers had to purchase an appliance that met energy standards set by the federal government and was at least 30% more efficient than the model being exchanged. The new appliances were Energy Star stamped or went beyond that. Appliances could be room air conditioners, clothes washers, central air conditioners, boilers, furnaces (oil and gas), dishwashers, freezers, heat pumps (air source and geothermal), refrigerators, and water heaters. Some states based the rebate on the efficiency ratio of the appliance, saving consumer's both upfront costs and bills over the life of the appliance. For example, replacing a clothes washer manufactured before 2000 with a new Energy Star model means an annual saving of $135.

This innovative program saw mixed responses across states. Each state had its own program dates, rules (such as appliance eligibility) and budget. Iowa saw retailers offering rebates up to $500 on refrigerators, washing machines and dishwashers. Federal funds amounting to $2.7 million were exhausted in less than a day. Minnesota exhausted $5 million in less than three days. Ohio, that had $10.5 billion to offer in application rebates, cleaned out in just a few weeks. New York exhausted $5.6 million of the $18.7 million allotted to it in a week with many customers waiting in lines. The topper was the state program launch in California on April 22, 2010. A whopping $35.2 million was set aside for Californians to upgrade their home appliances. Arkansas, however, did not see a mad rush. Experts believe this was because the rebate was not high enough to entice purchasers unless they needed a new appliance anyway.

The success of the program has been heartening and large sale of big ticket durables has boosted the manufacturing sector. Economists are unsure whether the appliance program will deliver the same results as the "Clunkers program" that created jobs and boosted the automotive industry in July 2009. As many appliances were not US manufactured, some profits went out of the economy.

However, there is no doubt that the "Cash for Refrigerators" scheme came at a good time. "It's been a boon to consumers and retailers," said Francis Murray of the New York State Energy and Research Development Authority. The program will continue in all the states till the allocated funds are exhausted.

by: Daljeet Sidhu

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