Evaluation of a conservation program for commercial and industrial customers

Kenneth Train (), Patrice Ignelzi and Mark Kumm

Energy, 1985, vol. 10, issue 10, 1079-1088

Abstract: We evaluate a utility-sponsored conservation program in which commercial and industrial customers received cash rebates for installing energy-saving devices. Our analysis indicates: 1.(1) Customers who asked to be audited (as opposed to a utility representative initiating the audit) had a greater tendency to install hardware under the program than those who had not asked to be audited.2.(2) Up to a point, larger customers had a greater tendency to install hardware than smaller customers; however, the very largest customers had a lower probability of participating than smaller customers, possibly because the rebates were insufficiently large to affect their decision making.3.(3) Lighting system changes were by far the most popular type of installation.4.(4) Most of the hardware installed under the program had very short payback periods to the customer, with more than half the items having payback periods of less than one year.5.(5) Statistical analysis of customers' energy bills before and after the hardware installation revealed identifiable reductions in energy consumption; the amount of reduction varied, depending on the type of hardware installed, from 2.1 to 5.7% of monthly kWh consumption.6.(6) The cost per kWh of statistically estimated energy savings was much less than the average fuel costs for generation, indicating that conservation through rebates may be a cost-effective alternative supply of energy.

Date: 1985
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:10:y:1985:i:10:p:1079-1088

DOI: 10.1016/0360-5442(85)90023-4

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