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Evidence of a Homeowner-Renter Gap for Electric Appliances

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  • Lucas W. Davis

Abstract

This paper provides the first empirical analysis of the homeowner-renter gap for electric appliances. Using U.S. nationally representative data, the analysis shows that renters are significantly more likely than homeowners to have electric heat, electric hot water heating, an electric stove, and an electric dryer. The gap is highly statistically significant, prevalent across regions, and holds after controlling for the type, size, and age of the home, as well as for climate and household characteristics. The paper argues that this gap arises from the same split incentives that lead to the “landlord-tenant problem†and discusses the implications of the gap for an emerging set of policies aimed at reducing carbon dioxide emissions through building electrification.

Suggested Citation

  • Lucas W. Davis, 2023. "Evidence of a Homeowner-Renter Gap for Electric Appliances," The Energy Journal, , vol. 44(4), pages 53-64, July.
    • Handle: RePEc:sae:enejou:v:44:y:2023:i:4:p:53-64
    DOI: 10.5547/01956574.44.4.ldav
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    References listed on IDEAS

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    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. Lucas W. Davis, 2025. "What Matters for Electrification? Evidence from 70 Years of U.S. Home Heating Choices," The Review of Economics and Statistics, MIT Press, vol. 107(3), pages 668-684, May.
    3. Melvin, Jesse, 2018. "The split incentives energy efficiency problem: Evidence of underinvestment by landlords," Energy Policy, Elsevier, vol. 115(C), pages 342-352.
    4. 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.
    5. Stephen P. Holland & Erin T. Mansur & Nicholas Z. Muller & Andrew J. Yates, 2020. "Decompositions and Policy Consequences of an Extraordinary Decline in Air Pollution from Electricity Generation," American Economic Journal: Economic Policy, American Economic Association, vol. 12(4), pages 244-274, November.
    6. 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.
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    Cited by:

    1. Best, Rohan & Chareunsy, Andrea & Nazifi, Fatemeh, 2025. "Persistent energy poverty for renters motivates policy reform," Energy Economics, Elsevier, vol. 147(C).
    2. 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).

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