Solving the Split Incentive Problem – Reframing Investment in Energy Efficiency, for Building Owners & Tenants
In rental properties, there is a common obstacle to investment in energy efficiency. If the owner invests in efficient HVAC equipment, the tenant receives the benefit of lower utility bills. This reduces the financial incentive for building owners to make these upgrades. Seen more broadly, the “split incentive” exists whenever the responsibility for a proposed improvement is held separately from its benefits. Since rapid implementation of energy efficiency is critical to addressing the climate crisis, the split incentive is an obstacle that endangers our collective future. Luckily, there are numerous solutions to the problem. This program will present concepts for reframing how we think about the split incentive as well as practical tools, including: commercial and residential lease language; organizational changes; staff incentives, policy proposals in other cities; and marketing, cultural, and informational solutions. Click Here to View List of Attendees SPEAKER Aaron Michels, Director of Operations, Energy Resources Group, Inc. - Aaron Michels is the Operations Director at Energy Resources Group, Inc. (ERG), and is responsible for ERG’s tools used in utility, HVAC loads, and ventilation analysis. He works primarily on energy efficiency in buildings; projects from controls retro-commissioning to energy master planning. Aaron has approached earth-friendly living from many different angles.… Continue Reading Solving the Split Incentive Problem – Reframing Investment in Energy Efficiency, for Building Owners & Tenants
