Split Incentives and Energy Efficiency in Canadian Multi-Family Dwellings

Denise Young and Lucie Maruejols ()
Additional contact information
Lucie Maruejols: University of Alberta, Department of Economics, Postal: 8-14 HM Tory Building, Edmonton, AB, T6G 2H4

No 2010-18, Working Papers from University of Alberta, Department of Economics

Abstract: This paper examines the energy-related behaviour of occupants and owners of multi-family dwellings in Canada, some of whom do not pay directly for electricity or heat, but instead have these costs included in their rent or condo fees. Using data from the 2003 Survey of Household Energy Use, we look at the extent to which split incentives that result from bill-paying arrangements effect a variety of activities including the setting of temperatures at various times of the day and the use of eco-friendly options in basic household tasks. Findings suggest that these split incentives do indeed impact some aspects of occupant behaviour, with households who do not pay directly for their heat opting for increased thermal comfort and being less sensitive to whether or not somebody is at home and the severity of the climate when deciding on temperature settings. Regardless of who pays for utilities, Canadian households who live in multi-family dwellings are generally unresponsive to fuel prices. Our empirical results suggest that the possibility of environmental benefits from policies aimed at improving energy-efficiency in this sector, especially if targeted at reducing the impacts of the behaviour of those who do not pay directly for energy use.

Keywords: energy efficiency; agency effects; household behaviour (search for similar items in EconPapers)
JEL-codes: D12 Q41 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2010-11-01
New Economics Papers: this item is included in nep-ene and nep-env
Note: energy efficiency; agency effects; household behaviour
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Split incentives and energy efficiency in Canadian multi-family dwellings (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:albaec:2010_018

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