CEA Study: Proposed California TV Mandate Costly, Limiting

The Consumer Electronics Association today released a report indicating the economic harm consumers and businesses in the state of California would suffer under the California Energy Commission’s proposal to set limits on TV electricity usage. The study, commissioned by CEA and conducted by economic consulting firm Resolution Economics, analyzes the economic impact of the CEC’s proposed regulations in California.

Key findings from the study:

• $50 million and 4,600 retail jobs would be lost in California 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 TV sets they want.

• Consumers are free today to choose energy efficient TV sets, and consumers who do so pay, on average, $167 more for ENERGY STAR qualified TV sets, according to Best Buy. But rather than allow consumers to make that choice, the proposed CEC regulations would force all Californians to buy more expensive TV sets that meet state-mandated technical specifications, resulting in higher prices for all TV sets, whether or not consumers want to buy an energy-efficient model.

• Sales of liquid-crystal display (LCD) TVs measuring 30-34 inches rose 70 percent in 2008, but 83 percent of LCD TVs measuring 24-34 inches that meet ENERGY STAR specifications would be eliminated under the 2013 standard.

• Additionally, 80 percent of current 35-39 inch LCD TVs and 100 percent of current plasma TV models larger than 60 inches would be eliminated under the 2011 standard.

• Removing TV sets from the market decreases competition among brands, reducing innovation of new features and technologies. New product developments such as 3D-HDTV and Internet-enabled TV sets could be significantly impacted or delayed to market due to concerns about meeting the CEC limits.