Reviewer: KatherineCampbell, PhD

Popular large-screen televisions are often energy hogs. Nevertheless, the cost to power one large-screen TV is relatively modest and affordable for most consumers. When aggregated across all consumers, however, the energy consumption costs are substantial. California estimates that enough energy to power 864,000 homes annually could be conserved if it imposes energy efficiency limits on TVs sold in the state.

Despite the potential social benefits of reduced power consumption, TV manufacturers and retailers are vehemently opposing California's proposed regulation. They argue that the regulation would hurt consumers because meeting efficiency standards would increase TV prices and constrain the features that could be offered. They argue that consumers already have the choice to buy more energy-efficient TVs, and they suggest that market mechanisms are better than regulation in meeting consumer demands. In opposing energy efficiency standards, however, are TV manufacturers neglecting their responsibilities as corporate citizens?

1. What is motivating California regulators to consider imposing energy consumption guidelines for TVs sold in the state?
   
   
2. Why might market mechanisms fail to provide incentives for improving the energy efficiency of TVs?
   
   
3. What are the potential costs and benefits of California's new energy guidelines for consumers?
   
   
4. Why might embracing California's energy consumption regulations be in the best long-term economic interests of TV manufacturers?
   
   
5. How might California's energy consumption regulations affect other states?

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