Energy Star Program Certifies 15 Out of 20 Bogus Products
longacre writes "A Gasoline-Powered Alarm Clock was among 15 bogus products granted the coveted Energy Star seal of approval by the US Environmental Protection Agency during a secret evaluation conducted by the Government Accountability Office. In addition, four fictional manufacturers run by fake people and marketed with crummy websites — Cool Rapport (HVAC equipment), Futurizon Solar Innovations (lighting), Spartan Digital Electronics, and Tropical Thunder Appliances — were granted Energy Star partnerships. The root of the problem: Manufacturers need only submit photos and not actual examples of their products, and they submit their own efficiency ratings, which are not independently verified by the EPA."
Bernie Madoff stole 50 billion dollars right under the SEC and FINRA's noses. Unlike private agencies like the UL that face the threat of extinction if they ruin their brand, government agencies routinely screw up, screw the people they're supposed to protect and get more money for their failures.
It is a sad state of affairs that our government has to set up a separate agency to analyze the (in)efficiency of a government organization that is setup to analyze the (in)efficiencys of other organizations. The U.S government is becoming a conglomerate of Department of Redundancy Departments, whose productivity is measured in how much money is thrown down the chasm. Glad to see my tax dollars at work.
'We are trying to prove ourselves wrong as quickly as possible, because only in that way can we find progress.' RPF
That is a political non-starter. Cap and trade will come because it creates a vast new speculative market. Look forward to iterative securitization, credit default swaps and other wacky derivatives, market cornering, toxic assets, etc. etc. etc.
The people who will make the money in that market will be both the driving force and the authors of the legislation.
I suspect one of three things(or conceivably some combination):
Regulatory capture: Regulatory entities frequently(out of a mixture of lobbying and the human social processes that come with working together), frequently start to identify with the entities they regulate. It's like Stockholm Syndrome for bureaucracies. Either because you fear the lobbying clout of people upset with your decisions, or because you really don't want to be "not a team player", you start getting really softball regulation.
Bad incentive structure: Defining good metrics for productivity is hard. Defining bad ones is easy. It would be totally believable that, either by design or in practice, the guy who approves 10 products in a day gets more brownie points than the guy who denies 10, or carefully researches 5.
Intentional brokenness: A common(and quite sensible) defensive mechanism used by entities or industries that fear they will face conditions harmful to their interests(either regulation, consumer backlash, or both) is to pre-emptively "show their cooperation" by collaborating with their friends in legislature, or in "objective 3rd party" organizations produced for the purpose, to establish carefully broken softball standards that strongly resemble whatever reform they feared; but have little or none of the punch.