Solving the Split Incentive Problem – Reframing Investment in Energy Efficiency, for Building Owners & Tenants
In rental properties, there is a common obstacle to investment in energy efficiency. If the owner invests in efficient HVAC equipment, the tenant receives the benefit of lower utility bills. This reduces the financial incentive for building owners to make these upgrades. Seen more broadly, the “split incentive” exists whenever the responsibility for a proposed improvement is… Continue Reading Solving the Split Incentive Problem – Reframing Investment in Energy Efficiency, for Building Owners & Tenants