ARE Seminar by Professor Richard T. Carson (University of California, San Diego)
24 August 2012
The Influence of Rebate Programs on the Demand for Water Heaters The Case of New South Wales
This paper examines the role of Australian hot water system rebate programs in shifting the existing stock of electric water heaters toward more climate friendly versions using two unique data sets from New South Wales homeowners. The first data set is based on a survey of households who recently purchased a water heater before and after the rebate programs were in place. The other is based on a set of stated preference questions asked of households soon to face a replacement decision. We find that the programs significantly increased shares of solar/heat pump systems. The programs, however, appeared less effective for households with access to natural gas and in an emergency replacement situation. Data from discrete choice experiments were analyzed using several choice models. Two newly proposed models using more flexible heterogeneity distribution clearly dominate mixed logit and latent class models currently in use. Predictions from our preferred model are reasonably consistent with actual purchase data. Results suggest considerable heterogeneity with respect to household preferences toward different types of water heaters and the discount rates they hold.
Everyone is welcome to attend.
Time: 3:00 - 4:30 PM
Location: Room 109, RD Watt Building, A04
Contact: Dr Todd Sanderson
Phone: 02 9351 2527