The split incentives energy efficiency problem: Evidence of underinvestment by landlords

The split incentives energy efficiency problem: Evidence of underinvestment by landlords Due to asymmetric information between landlords and renters, landlords with tenants who pay the utility bill underinvest in energy efficiency measures. Using data from the 2009 Residential Energy Consumption Survey, I present empirical evidence that this underinvestment occurs in multiple categories of residential energy efficiency: space-heating, water-heating, window thickness, insulation, and weatherization. Because these landlords did not invest at the same rate as homeowners and landlords who pay the energy bill, their tenants’ energy bill was higher by nearly 2%. When combined with other researchers’ estimations for appliances (Davis, 2010), insulation, and thermostat responsiveness for tenants (Gillingham et al., 2012), our results imply that renters use approximately 2.7% more energy overall due to the landlord-tenant split incentive issue. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Energy Policy Elsevier

The split incentives energy efficiency problem: Evidence of underinvestment by landlords

Loading next page...
 
/lp/elsevier/the-split-incentives-energy-efficiency-problem-evidence-of-xfLn2zaHwc
Publisher
Elsevier
Copyright
Copyright © 2017 Elsevier Ltd
ISSN
0301-4215
D.O.I.
10.1016/j.enpol.2017.11.069
Publisher site
See Article on Publisher Site

Abstract

Due to asymmetric information between landlords and renters, landlords with tenants who pay the utility bill underinvest in energy efficiency measures. Using data from the 2009 Residential Energy Consumption Survey, I present empirical evidence that this underinvestment occurs in multiple categories of residential energy efficiency: space-heating, water-heating, window thickness, insulation, and weatherization. Because these landlords did not invest at the same rate as homeowners and landlords who pay the energy bill, their tenants’ energy bill was higher by nearly 2%. When combined with other researchers’ estimations for appliances (Davis, 2010), insulation, and thermostat responsiveness for tenants (Gillingham et al., 2012), our results imply that renters use approximately 2.7% more energy overall due to the landlord-tenant split incentive issue.

Journal

Energy PolicyElsevier

Published: Apr 1, 2018

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve Freelancer

DeepDyve Pro

Price
FREE
$49/month

$360/year
Save searches from
Google Scholar,
PubMed
Create lists to
organize your research
Export lists, citations
Read DeepDyve articles
Abstract access only
Unlimited access to over
18 million full-text articles
Print
20 pages/month
PDF Discount
20% off