BUSINESS & ECONOMICS

Perverse energy incentives for renters and appartment owners

Uploaded on 02/04/2008

There's a lot of energy costs left on the table because the incentives in the rental apartment business are all wrong.

If the tenant pays for heat and cooling, the landlord has no incentive to invest in sensible conservation , insulation, energy star equipment, etc.

If these costs are included in the rent, the tenant has no incentive to conserve and may for instance open windows to air it out and crank up the heat or AC at the same time, leave appliances and lights on, etc.

Couldn't some third party mechanism help lower total costs by somehow mediating this dilemma? Maybe the landlords get tax credits or ?

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