Discussion
A programme claims 50 MW of reduction, of which surveys suggest 20 per cent would have occurred anyway. The net reduction is
Answer: C
Correct answer: 40 MW
\[ 50 \times (1 - 0.20) = 40\ \mathrm{MW}. \] The gross figure counts everything the participants did; the net counts only what the programme caused. Since the programme is judged on cost per megawatt actually saved, the free rider adjustment can change a favourable evaluation into an unfavourable one.
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