Friday, August 7, 2009

Cash for Refrigerator Clunkers?

Not only can you get cash for your clunker car, you can also earn $30 per old refrigerator in a number of states that promote refrigerator recycling programs. According to this New York Times blog entry, the "programs target old refrigerators and freezers because they use substantially more electricity than those built after the introduction of federal efficiency standards."

What's a little confusing is why consumers need this incentive to upgrade their refrigerators. The article claims that "Utilities commonly estimate that homeowners can save up to $150 a year on their electricity bill by dumping their old refrigerator or freezer." One would think that upgrading is a positive net present value investment. Maybe instead of upgrading, they are just getting rid of old, unused or unneeded appliances. (Or perhaps people aren't making NPV calculations in their purchasing decisions.)

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