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Blame it on the Owner – Ownership and Energy Performance of Multidwelling buildings

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Abstract

Institutional structures may cause considerable inefficiencies in the use of energy. In this paper, we investigate the energy efficiency of multi-dwelling buildings in Sweden to find out whether the type of ownership matters. More specifically, we investigate whether rental apartment buildings are less efficient than cooperative apartment buildings and whether public ownership has a negative impact on energy efficiency. A conceptual framework is presented to illustrate that such differences could be explained by the split incentive problem and deviations from profit maximizing interests. The empirical analysis is based on a unique dataset that combines data from energy performance certificates with ownership data on residential units. The results indicate that cooperative apartment buildings are significantly more energy efficient than buildings with rental apartments. The results also indicate that publicly owned buildings have lower energy performance than privately owned ones.

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  • Broberg, Thomas & Egüez, Alejandro, 2017. "Blame it on the Owner – Ownership and Energy Performance of Multidwelling buildings," CERE Working Papers 2017:4, CERE - the Center for Environmental and Resource Economics.
    • Handle: RePEc:hhs:slucer:2017_004
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    File URL: http://www.cere.se/se/forskning/working-papers/837-blame-it-on-the-owner-ownership-and-energy-performance-of-multidwelling-buildings.html
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    More about this item

    Keywords

    Energy efficiency; Energy performance certificates; Multi-dwelling buildings; Split incentives; Public versus private management; Profit satisficing;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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