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Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Essen >
Ruhr Economic Papers, RWI >
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http://hdl.handle.net/10419/29893
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| Title: | | Identifying free-riding in energy-conservation programs using revealed preference data  |
| 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: | | Publikationen von Forscherinnen und Forschern des RWI Ruhr Economic Papers, RWI
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