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Title:Identifying free-riding in energy-conservation programs using revealed preference data PDF Logo
Authors:Grösche, Peter
Schmidt, Christoph M.
Vance, Colin
Issue Date:2009
Series/Report no.:Ruhr economic papers 99
Abstract:Identifying the incidence of free-ridership is significant to a range of issues relevant to program evaluation, including the calculation of net program benefits and more general assessments of political acceptability. Estimates of free-ridership in the area of energy policy frequently rely on ex-post surveys that ask program participants whether they would have behaved differently in the absence of program support. The present paper proposes an ex-ante approach to the calculation of the free-rider share using revealed preference data on home renovations from Germany's residential sector. We employ a discrete-choice model to simulate the effect of grants on renovation choices, the output from which is used to assess the extent of free-ridership under a contemporary subsidy program. Aside from its simplicity, a key advantage of the approach is that it bestows policymakers with an estimate of free-ridership prior to program implementation.
Subjects:Energy efficiency
residential sector
random utility model
discrete choice simulation
JEL:C25
D12
Q4
ISBN:978-3-86788-110-4
Document Type:Working Paper
Appears in Collections:Ruhr Economic Papers, RWI
Publikationen von Forscherinnen und Forschern des RWI

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