LONDON Ė Throughout the first quarter of 2012 the Taiwan government plans to provide its citizens with subsidies for the replacement of old air conditioners, refrigerators and washing machines, according to a Taiwan Economic News report.
The government will provide NT$2,000 (about $66) for each old item replaced with an energy-saving model, the report said.
The program is intended to help Taiwan cope with knock-on effects from the European debt crisis in 2012 and bolster the local economy. The subsidy only applies to the purchase of Taiwan-made products for the replacement of old machines.
The plan is expected to have a triple benefit; saving national energy consumption, stimulating the local economy and stimulating the local development of consumer goods, the report quoted Jerry Ou, director general of the Bureau of Energy, under the Ministry of Economic Affairs (MOEA), as saying.
The program has a total budget of NT$600 million ($20 million) but it is expected to prompt the purchase of 300,000 Taiwan made units and NT$7.9 billion (about $260 million) of consumption, the report said.
LCD TV could be the subject of another subsidy later in 2012 timed to coincide with the introduction of digital TV broadcasts in Taiwan in July, the report added.
Similar spending incentives were provided for the automobile trade-ins in several countries in response to the global economic crisis of 2008-2009.
Air conditioners and refrigerators account for 45 and 11 percent of domestic power consumption, respectively, the report said.
A rightly calculated move by the Taiwan Govt. This is a great boon for those who own very old gadgets of $10 US worth and at the same time who have money to buy the new ones. Mostly those gadgets old by 5 to 7 years which are working properly many wont be interested in changing!
This could only result in a temporary surge in manufacturing, because these kind of steps do not address the fundamental source of the problem. IMO in just a year many would be willing to excahnge this local model for a new branded one just because they got free money for buying these. So they all will end up as junk in 2 or 3 years time.
This is a good trade off for a government. They can help people upgrade to more efficient appliances, or build more power plants. It just makes sense for the government to spend there peoples' money this way.
Like Japan, Taiwan is also situated at an earthquake ridden zone. The nuclear crisis caused by tsunami earlier this year in Japan has a big impact on us. We are facing the dilemma of continuing or discontinuing the nuclear power plants currently operating or under construction on this island. In any case, improving energy efficiency is always a right step. We welcome this initiative from our government.
By the way, thanks for posting our national flag. We really appreciate it. And, to our Mainland China Compatriots, please donít feel offended. The East and West Germany both had their own identities before reunification. If we are brothers, please give us an equal stance so that we can sit down and talk like brothers.
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