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An Actions-Based Estimate of the Free Rider Fraction in Electric Utility DSM Programs
The Energy Journal
Vol. 17, No. 3 (1996), pp. 41-48
Published by: International Association for Energy Economics
Stable URL: http://www.jstor.org/stable/41322692
Page Count: 8
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Most estimates of the free rider fraction are based on ex-post surveys of program participants. Program participants who indicate that they would have made the supported changes without the program are labeled as "free riders. "This paper provides an estimate of the free rider fraction based on consumer actions. A set of energy-use clusters acts as a base against which the likely behavior of consumers in the absence of an efficiency program can be assessed. The clusters can also be used target spending at customers who are least likely to invest in efficiency on their own. The Actions-Based estimate does not suffer from the biases implicit in the standard ex-post survey estimates.
The Energy Journal © 1996 International Association for Energy Economics