Scott Case writes a compelling article about why some state appliance rebate programs sold out quickly, while other states have millions of dollars leftover. He concludes that:
(1) Creating artificial scarcity by requiring applicants to pre-reserve the rebate leads to higher subscription rates;
(2) Offering rebates on both visible appliances like microwaves and stoves with behind-the-scenes appliances like water heaters and heating systems, increases demand for both, and;
(3) For those consumers who were already planning to upgrade their equipment, the program should only include the most efficient models for each appliance category.
As the federal government considers a similar national program, these lessons could improve the program and avoid the low adoption rates seen in Pennsylvania and Washington.
