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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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    Cited by:

    1. Huang, Luling & Nock, Destenie & Cong, Shuchen & Qiu, Yueming (Lucy), 2023. "Inequalities across cooling and heating in households: Energy equity gaps," Energy Policy, Elsevier, vol. 182(C).
    2. Best, Rohan & Burke, Paul J., 2022. "Effects of renting on household energy expenditure: Evidence from Australia," Energy Policy, Elsevier, vol. 166(C).
    3. Hammerle, Mara & Burke, Paul J., 2022. "Solar PV and energy poverty in Australia's residential sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(04), January.
    4. Hector H. Sandoval & Pedro I. Hancevic, 2023. "Split Incentives in Emerging Countries," Working Papers 242, Red Nacional de Investigadores en Economía (RedNIE).
    5. Chaudhuri, Kausik & Huaccha, Gissell, 2023. "Who bears the energy cost? Local income deprivation and the household energy efficiency gap," Energy Economics, Elsevier, vol. 127(PA).
    6. Covington, Hannah & Woo-Shem, Brian & Wang, Chenli & Roth, Thomas & Nguyen, Cuong & Liu, Yuhong & Fang, Yi & Lee, Hohyun, 2024. "Method for evaluating fairness of electricity tariffs with regard to income level of residential buildings," Applied Energy, Elsevier, vol. 353(PB).
    7. 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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    JEL classification:

    • F0 - International Economics - - General

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