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Question:

How does a neon transformer work?

I just saw the mythbusters use a neon transformer to spark a methane explosion and the arch looked like a continuous irredecent light. So are neon transformers a part of neon lights? That and if you know, what is the inert gass inside the lights?

Answer:

Those are good answers except nothing to do with is incorrect. Neon is a generic term for several gases and vapors used for advertising lighting.The transformers are used for other purposes as they are less costly than transformers optimized for most other purpose. Some of them are designed for as little as 100 volts ac input. Neil
Neon transformers step up the 120 Volt power to several thousand volts - enough to create a long spark in air. Every neon sign has a neon transformer either as part of it or very close by. The gas inside the neon tube and the color of the glass the tube is made of control what color the tube will shine. Neon gives a reddish-orange-ish color. Other gasses, such as argon, helium, xenon, krypton, etc., will glow different colors when enough voltage is applied to them, causing the gasses to ionize and produce light. Using colored glass tubes also controls the color. The inside of the tube may also be coated with a phosphor - much like a fluorescent lamp - to produce a particular color. For more information, see:
They are very high voltage with 2 leads and will produce a big spark across a large air gap. Neon gas with additives cause the different colors.
Neon transformers are used to step up ordinary low voltages (440V) to a very high value. Obviously the secondary currents are very low of order of a few mA. They have nothing to do with neon lights/signs. Neon lights are the lamps filled with neon gas.
Neon transformer just an ordinary step up transformer to produce 5000V at very low current (a few mA) Neon light is a long tube fills with neon gas.

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