IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v42y2021i5p1-18.html

Factors Affecting Renters’ Electricity Use: More Than Split Incentives

Author

Listed:
  • Rohan Best
  • Paul J. Burke
  • Shuhei Nishitateno

Abstract

This paper uses data from the 2015 Residential Energy Consumption Survey to explore the extent to which renters’ electricity use in the United States exceeds that of otherwise similar non-renters. Renting households are found to use approximately 9% more electricity than non-renters when controlling for location, socioeconomic, and many appliance-quantity controls. There are multiple factors that explain this extra electricity use, including inferior energy efficiency of appliances, behavioral factors, differences in bill payment responsibilities, and additional reliance by renters on electric space and water heaters. The paper finds that none of these factors are dominant. The phenomenon of renters’ (conditionally) higher electricity use is thus best understood as one that emerges from multiple sources.

Suggested Citation

  • Rohan Best & Paul J. Burke & Shuhei Nishitateno, 2021. "Factors Affecting Renters’ Electricity Use: More Than Split Incentives," The Energy Journal, , vol. 42(5), pages 1-18, September.
  • Handle: RePEc:sae:enejou:v:42:y:2021:i:5:p:1-18
    DOI: 10.5547/01956574.42.5.rbes
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.42.5.rbes
    Download Restriction: no

    File URL: https://libkey.io/10.5547/01956574.42.5.rbes?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Myers, Erica, 2020. "Asymmetric information in residential rental markets: Implications for the energy efficiency gap," Journal of Public Economics, Elsevier, vol. 190(C).
    2. Melvin, Jesse, 2018. "The split incentives energy efficiency problem: Evidence of underinvestment by landlords," Energy Policy, Elsevier, vol. 115(C), pages 342-352.
    3. Hunt Allcott & Michael Greenstone, 2012. "Is There an Energy Efficiency Gap?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 3-28, Winter.
    4. Huebner, Gesche & Shipworth, David & Hamilton, Ian & Chalabi, Zaid & Oreszczyn, Tadj, 2016. "Understanding electricity consumption: A comparative contribution of building factors, socio-demographics, appliances, behaviours and attitudes," Applied Energy, Elsevier, vol. 177(C), pages 692-702.
    5. repec:aen:eeepjl:eeep5-2-gandhi is not listed on IDEAS
    6. repec:aen:journl:ej39-2-burke is not listed on IDEAS
    7. 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.
    8. repec:aen:eeepjl:eeep5-2-houde is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Best, Rohan & Chareunsy, Andrea & Nazifi, Fatemeh, 2025. "Persistent energy poverty for renters motivates policy reform," Energy Economics, Elsevier, vol. 147(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lucas W. Davis, 2023. "Evidence of a Homeowner-Renter Gap for Electric Appliances," The Energy Journal, , vol. 44(4), pages 53-64, July.
    2. Lang, Ghislaine & Lanz, Bruno, 2021. "Energy efficiency, information, and the acceptability of rent increases: A survey experiment with tenants," Energy Economics, Elsevier, vol. 95(C).
    3. Louis-Gaëtan Giraudet, 2018. "Energy efficiency as a credence good: A review of informational barriers to building energy savings," Working Papers 2018.07, FAERE - French Association of Environmental and Resource Economists.
    4. Petrov, Ivan & Ryan, Lisa, 2021. "The landlord-tenant problem and energy efficiency in the residential rental market," Energy Policy, Elsevier, vol. 157(C).
    5. Brewer, Dylan, 2022. "Equilibrium sorting and moral hazard in residential energy contracts," Journal of Urban Economics, Elsevier, vol. 129(C).
    6. Chersoni, Giulia & DellaValle, Nives & Fontana, Magda, 2022. "Modelling thermal insulation investment choice in the EU via a behaviourally informed agent-based model," Energy Policy, Elsevier, vol. 163(C).
    7. Giraudet, Louis-Gaëtan, 2020. "Energy efficiency as a credence good: A review of informational barriers to energy savings in the building sector," Energy Economics, Elsevier, vol. 87(C).
    8. Lang, Ghislaine & Farsi, Mehdi & Lanz, Bruno & Weber, Sylvain, 2021. "Energy efficiency and heating technology investments: Manipulating financial information in a discrete choice experiment," Resource and Energy Economics, Elsevier, vol. 64(C).
    9. Bishop, Kelly C. & Kiribrahim-Sarikaya, Ozgen, 2024. "Energy-efficient investments in housing," Regional Science and Urban Economics, Elsevier, vol. 107(C).
    10. repec:aen:journl:ej38-4-papineau is not listed on IDEAS
    11. Cellini, Stefano, 2021. "Split incentives and endogenous inattention in home retrofits uptake: a story of selection on unobservables?," Energy Economics, Elsevier, vol. 104(C).
    12. Singhal, Puja & Sommer, Stephan & Kaestner, Kathrin & Pahle, Michael, 2025. "Split-incentives in energy efficiency investments? Evidence from rental housing," Resource and Energy Economics, Elsevier, vol. 82(C).
    13. Todd D. Gerarden & Richard G. Newell & Robert N. Stavins, 2025. "Assessing the Energy-Efficiency Gap," World Scientific Book Chapters, in: Economics of Environment, Climate Change, and Wine Selected Papers of Robert N Stavins Volume 3 (2011–2023), chapter 4, pages 53-118, World Scientific Publishing Co. Pte. Ltd..
    14. Fischbacher, Urs & Schudy, Simeon & Teyssier, Sabrina, 2021. "Heterogeneous preferences and investments in energy saving measures," Resource and Energy Economics, Elsevier, vol. 63(C).
    15. Yael Nidam & Ali Irani & Jamie Bemis & Christoph Reinhart, 2023. "Census-based urban building energy modeling to evaluate the effectiveness of retrofit programs," Environment and Planning B, , vol. 50(9), pages 2394-2406, November.
    16. Häckel, Björn & Pfosser, Stefan & Tränkler, Timm, 2017. "Explaining the energy efficiency gap - Expected Utility Theory versus Cumulative Prospect Theory," Energy Policy, Elsevier, vol. 111(C), pages 414-426.
    17. Zha, Donglan & Yang, Guanglei & Wang, Wenzhong & Wang, Qunwei & Zhou, Dequn, 2020. "Appliance energy labels and consumer heterogeneity: A latent class approach based on a discrete choice experiment in China," Energy Economics, Elsevier, vol. 90(C).
    18. Heutel, Garth, 2019. "Prospect theory and energy efficiency," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 236-254.
    19. Lai, Yuan & Papadopoulos, Sokratis & Fuerst, Franz & Pivo, Gary & Sagi, Jacob & Kontokosta, Constantine E., 2022. "Building retrofit hurdle rates and risk aversion in energy efficiency investments," Applied Energy, Elsevier, vol. 306(PB).
    20. Matilde Giaccherini & David H. Herberich & David Jimenez-Gomez & John A. List & Giovanni Ponti & Michael K. Price, 2019. "The Behavioralist Goes Door-To-Door: Understanding Household Technological Diffusion Using a Theory-Driven Natural Field Experiment," NBER Working Papers 26173, National Bureau of Economic Research, Inc.
    21. He, Shutong & Qian, Queena K. & Porsius, Jarry T., 2025. "Trigger my motivations and remove my barriers: Latent class analyses of homeowners’ perception about home energy retrofit," Energy Policy, Elsevier, vol. 205(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:enejou:v:42:y:2021:i:5:p:1-18. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.