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Factors Affecting Renters’ Electricity Use: More than Split Incentives

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  • Rohan Best
  • Paul J. Burke
  • Rohan Best

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, behavioural 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 & Rohan Best, 2020. "Factors Affecting Renters’ Electricity Use: More than Split Incentives," CAMA Working Papers 2020-82, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:camaaa:2020-82
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    File URL: https://crawford.anu.edu.au/sites/default/files/2025-01/82_2020_best_burke_nishitateno.pdf
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    References listed on IDEAS

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    1. 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.
    2. Myers, Erica, 2020. "Asymmetric information in residential rental markets: Implications for the energy efficiency gap," Journal of Public Economics, Elsevier, vol. 190(C).
    3. 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.
    4. Paul J. Burke & Ashani Abayasekara, 2018. "The Price Elasticity of Electricity Demand in the United States: A Three-Dimensional Analysis," The Energy Journal, , vol. 39(2), pages 123-146, March.
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    Cited by:

    1. Drescher, Katharina & Janzen, Benedikt, 2021. "Determinants, persistence, and dynamics of energy poverty: An empirical assessment using German household survey data," Energy Economics, Elsevier, vol. 102(C).

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    More about this item

    Keywords

    split incentives; rent; electricity consumption; efficiency; household survey; United States;
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