TAILIEUCHUNG - Green Marketing, Renewables, and Free Riders: Increasing Customer Demand for a Public Good

Utility green pricing sales continue to exhibit some growth, but growth has slowed in the past two years, in particular. Collectively, utilities in regulated electricity markets sold about billion kWh of green power to customers in 2008 (Table 9). Green pricing program sales to all customer classes grew by 11% in 2008, compared to rates ranging from 26% to 56% in recent years (Table 9 and Figure 4). The loss of the FPL program had a noticeable impact on sales. Without the termination of the FPL program, utility green pricing program sales would have grown at a rate of. | LBNL-40632 UC-1321 Green Marketing Renewables and Free Riders Increasing Customer Demand for a Public Good Ryan Wiser and Steven Pickle Environmental Energy Technologies Division Ernest Orlando Lawrence Berkeley National Laboratory University of California Berkeley California 94720 September 1997 The work described in this study was funded by the Assistant Secretary of Energy Efficiency and Renewable Energy Office of Utility Technologies Office of Energy Management Division of the . Department of Energy under Contract No. DE-ACO3-76sFoOO98. Table of Contents Acknowledgments. iii Executive Section 1 Section 2 Green Marketing in the Electricity Industry .5 What Is Green Power Marketing .5 Utility Green Pricing Retail Competition Pilot Merits and Drawbacks of Green Power Section 3 Public Goods and Free Riders .11 Private Goods and Public Goods .11 Does Renewable Energy Supply Public Goods .11 The Free Rider Problem .13 Section 4 Free Riders in Green Power Programs .15 Section 5 Reducing Free-Riding in Green Power Programs Recommendations for Take Advantage of Community and Social Assure Customers that They Can Make a Difference .22 Emphasize Customer Retention .26 Enhance Private Section 6 Appendix A Policy Implications A Research

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