@Landa @futurebird @peachfront @g
These labels are one of my favourite things. They’re a clear demonstration of regulatory intervention that made a market actually work well. Consumers in a market require information to be able to make good decisions and information asymmetry breaks markets.
When they introduced the scheme, most appliances were C (or worse) with a few B. Within a few years, almost everything was A because you couldn’t sell things that were B: if you’re buying an appliance that you expect to last for ten years, you care a lot about the annual cost.
They added AA and AAA because of industry lobbying: companies producing more efficient units wanted to be able to show that as a clear differentiator.
And that ended up being so successful that they had to recalibrate the scheme. An absolutely amazing market impact without the regulators having to mandate any efficiency standard, they just increased consumer awareness.
This model was one of the major inspirations for the labelling schemes in the CRA.