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To reduce electricity demand a utility intends to introduce compact fluorescent lamp (CFL) costing $15 each for a standard 18W lamp (with effective output of

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To reduce electricity demand a utility intends to introduce compact fluorescent lamp (CFL) costing $15 each for a standard 18W lamp (with effective output of 75W ). The utility proposes to offer a $5 rebate on each lamp and expects that one million consumers would take advantage of this scheme. A CFL lasts for 10,000h. The utility avoids the cost of electricity purchase at 4 cents per kWh but incurs an administration charge of $1per customer. If the utility intends to pass 85% of the net savings to the consumers, determine how the proposal fares from the perspective of different stakeholders

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