unintended consequence of government regulation Archives

Electric Extortion

By Econ70 | 09/26/2012

A Maryland Public Service Commission law designed to promote energy conservation is being redesigned. The law originally allowed public utilities to charge rate-payers a surcharge whenever electricity use fell short. The unintended consequence, utilities had less incentive to quickly restore power after storms. Imagine that! Now, the MPSC will only allow the surcharge for 24…

Baked by Regulation

By Econ70 | 09/30/2011

The Friday File: The latest Easy Bake Oven comes with a new instruction: no light bulb needed! Consider it an unintended consequence of the government’s move to phase out incandescent bulbs. Designers of the EBO adapted and the ovens now have a heating element. But, parents may balk at the new price; $49.99 compared to…