Split Incentives in Residential Energy Consumption
AbstractWe explore two split incentive issues between owners and occupants of residential dwellings: heating or cooling incentives are suboptimal when the occupant does not pay for energy use, and insulation incentives are suboptimal when the occupant cannot perfectly observe the owner's insulation choice. We empirically quantify the effect of these two market failures and how they affect behavior in California. We find that those who pay are 16 percent more likely to change the heating setting at night and owner-occupied dwellings are 20 percent more likely to be insulated in the attic or ceiling. However, in contrast to common conception, we find that only small overall energy savings may be possible from policy interventions aimed at correcting the split incentive issues.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by International Association for Energy Economics in its journal The Energy Journal.
Volume (Year): Volume 33 (2012)
Issue (Month): Number 2 ()
Find related papers by JEL classification:
- F0 - International Economics - - General
You can help add them by filling out this form.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Eficiencia y equidad y las medidas de mejora energética de las edificaciones
by Ana Ramos in Economics for Energy on 2012-03-16 09:29:00
- Mills, Bradford & Schleich, Joachim, 2013. "Household transitions to energy efficient lighting," Working Papers "Sustainability and Innovation" S5/2013, Fraunhofer Institute for Systems and Innovation Research (ISI).
- Wilkerson, Jordan T. & Cullenward, Danny & Davidian, Danielle & Weyant, John P., 2013. "End use technology choice in the National Energy Modeling System (NEMS): An analysis of the residential and commercial building sectors," Energy Economics, Elsevier, vol. 40(C), pages 773-784.
- Kiran Krishnamurthy, Chandra & Kriström, Bengt, 2013. "How large is the Owner-Renter Divide? Evidence from an OECD cross-section," CERE Working Papers 2013:8, CERE - the Center for Environmental and Resource Economics.
- Gillingham, Kenneth & Palmer, Karen, 2013.
"Bridging the Energy Efficiency Gap: Policy Insights from Economic Theory and Empirical Evidence,"
dp-13-02-rev, Resources For the Future.
- Kenneth Gillingham & Karen Palmer, 2014. "Bridging the Energy Efficiency Gap: Policy Insights from Economic Theory and Empirical Evidence," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 8(1), pages 18-38, January.
- Suter, Jordan F. & Shammin, Md Rumi, 2013. "Returns to residential energy efficiency and conservation measures: A field experiment," Energy Policy, Elsevier, vol. 59(C), pages 551-561.
- Newell, Richard G. & Siikamäki, Juha, 2013.
"Nudging Energy Efficiency Behavior: The Role of Information Labels,"
dp-13-17, Resources For the Future.
- Richard G. Newell & Juha V. Siikamäki, 2013. "Nudging Energy Efficiency Behavior: The Role of Information Labels," NBER Working Papers 19224, National Bureau of Economic Research, Inc.
- Peter Newton & Peter Newman, 2013. "The Geography of Solar Photovoltaics (PV) and a New Low Carbon Urban Transition Theory," Sustainability, MDPI, Open Access Journal, vol. 5(6), pages 2537-2556, June.
- Xavier Labandeira & Ana Ramos, 2012. "Household Environmental Attitudes and Energy Efficiency in Buildings: Evidence from Spanish Data," Working Papers fa08-2012, Economics for Energy.
- repec:hhs:slucer:2014_008 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Williams).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.