Inaccurate Energy Saving Tags Still Guide Consumers to Good Choices

According to Tracee Carrasco of CBS2 News in New York, the yellow energy-savings tags on appliances do not accurately represent the dollar savings consumers will enjoy when purchasing new appliances.

Carrasco reports that professor of economics Lucas Davis simply says that, “The labels are wrong.”

Davis explains that the dollar figures given on the labels are national averages of electricity costs, and in New York, where electricity is much more expensive, the amount saved will most likely not be the same amount as what is written on the tags.

“They show information based on national average electricity prices,” Davis said. “The problem is, people have no idea how much they spend for electricity so they have no idea how to make that conversion.”

Nevertheless, even with the inaccurate numbers on the tags, they still help consumers decide which appliance to buy based on the comparison of amount saved with the other appliances on display. In other words the tags still help people save money and energy.

“We found people who saw better labels, made better decisions and they saved money—a lot of money,” Davis said.