Cash for Caulkers proposal to aid in Energy Efficiency of Homes
President Obama on Tuesday urged Congress to pass a measure that would offer incentives to consumers to make their homes more efficient by replacing doors, caulking windows, and padding their attics with more insulation.
Some advocates of the program have dubbed the measure “cash for caulkers” since it would use direct government incentives to consumers to spur both economic activity and a hoped for creation of jobs for retailers and the building trades. The proposal is similar in many ways to the “cash for clunkers” program last summer that offered rebates and was successful in spurring auto sales while the program ran.
Under one proposal currently on the table, $20 billion from February’s economic stimulus package would be used to offer incentives of $1,000 to more than $3,000 for people to apply to projects that improve the energy efficiency of their homes. The program would stimulate consumer spending for building trades retailers and manufacturers with an estimated 5 million homes able to be retrofitted under the program.
Australia launched a similar program aimed at retrofitting 2.9 million homes that it projects will create 4,000 new jobs. President Obama noted that the incentives would increase consumer spending, helping create jobs at retailers such as Home Depot and for contractors who would do the weatherization work. The program would also help consumers save on their heating and electricity bills as well, saving on the nations energy use.
Joe Robson, chairman of the National Association of Home Builders weighed in by saying “This is the kind of thinking that is going to get America back to work – and make a difference in many homeowners’ monthly utility bills”. It remains to be seen if the measure will pass Congress but at least it is a first step to help our fellow Americans.
