Tuesday, May 24, 2005

District air :: 7DAYS

The central cooling is being run by an outside company, which provides cold air to all apartments for a flat fee, which is added to tenants’ DEWA bills. “If we put an air conditioning unit in each building their bills would triple,” he said. “No company does district cooling based on usage.”
This would make a good intermediate microeconomics exam question: Compare the consumer's maximum utility when they are charged a flat rate and when they are charged a rate based on usage. Show that some kinds of consumers prefer a flat rate and others do not. Assuming district air is 3 times as efficient (in energy usage) as individual units for the same amount cooling, does that mean that district air is better?

I wonder if it is possible to charge individuals for their usage of district cooling; is it feasible but just too cheap to meter?


Blogger Keefieboy said...

I don't know about it being 'too cheap to meter' but I do know about switching the damn thing off when you don't need it. However, I am sure many of my neighbours leave it on all the time, even when they are out, thereby driving up the price for the more thrifty among us. It certainly is not cheap - we have lived in places where we've had window ACs, and the cost has been nowhere near what we have to pay now.

8:59 PM  

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