Housing tenure, energy consumption and the split-incentive issue in Australia
In recent years, there has been growing global recognition of the need to reducecarbon emissions in response to climate change concerns. It is generally acknowledged thatthe energy efficiency of existing homes can be improved, but there are significant barriers toits uptake. In particular, improving...
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| Format: | Journal Article |
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Routledge
2012
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| Online Access: | http://hdl.handle.net/20.500.11937/36317 |
| _version_ | 1848754735135326208 |
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| author | Wood, Gavin Ong, Rachel McMurray, Clinton |
| author_facet | Wood, Gavin Ong, Rachel McMurray, Clinton |
| author_sort | Wood, Gavin |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | In recent years, there has been growing global recognition of the need to reducecarbon emissions in response to climate change concerns. It is generally acknowledged thatthe energy efficiency of existing homes can be improved, but there are significant barriers toits uptake. In particular, improving the energy efficiency of private rental housing presentsunique policy challenges due to a split-incentive problem. This has prompted some governmentsto introduce programmes that encourage landlords to improve the energy efficiency oftheir properties. While landlords are responsible for the purchase of many energy-consuminghousehold appliances, tenants are responsible for energy bills. Since the landlord does notreap the immediate benefits of investment in energy-efficient equipment, the incentives motivatingsuch investment are weaker than for homeowners. This paper aims to quantify themagnitude of the split-incentive problem in the Australian private rental housing market byinvoking a modelling approach where energy expenditure is estimated as a function of housingtenure, dwelling type, location, climate and other socio-demographic variables. We find noevidence in support of the split-incentive hypothesis in Australia. The paper concludes thatdifferences in housing policy arrangements could be critical to the presence and importanceof split incentives. |
| first_indexed | 2025-11-14T08:45:08Z |
| format | Journal Article |
| id | curtin-20.500.11937-36317 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:45:08Z |
| publishDate | 2012 |
| publisher | Routledge |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-363172019-02-19T04:28:16Z Housing tenure, energy consumption and the split-incentive issue in Australia Wood, Gavin Ong, Rachel McMurray, Clinton principal-agent problem energy consumption Housing tenure split incentives In recent years, there has been growing global recognition of the need to reducecarbon emissions in response to climate change concerns. It is generally acknowledged thatthe energy efficiency of existing homes can be improved, but there are significant barriers toits uptake. In particular, improving the energy efficiency of private rental housing presentsunique policy challenges due to a split-incentive problem. This has prompted some governmentsto introduce programmes that encourage landlords to improve the energy efficiency oftheir properties. While landlords are responsible for the purchase of many energy-consuminghousehold appliances, tenants are responsible for energy bills. Since the landlord does notreap the immediate benefits of investment in energy-efficient equipment, the incentives motivatingsuch investment are weaker than for homeowners. This paper aims to quantify themagnitude of the split-incentive problem in the Australian private rental housing market byinvoking a modelling approach where energy expenditure is estimated as a function of housingtenure, dwelling type, location, climate and other socio-demographic variables. We find noevidence in support of the split-incentive hypothesis in Australia. The paper concludes thatdifferences in housing policy arrangements could be critical to the presence and importanceof split incentives. 2012 Journal Article http://hdl.handle.net/20.500.11937/36317 10.1080/14616718.2012.730218 Routledge fulltext |
| spellingShingle | principal-agent problem energy consumption Housing tenure split incentives Wood, Gavin Ong, Rachel McMurray, Clinton Housing tenure, energy consumption and the split-incentive issue in Australia |
| title | Housing tenure, energy consumption and the split-incentive issue in Australia |
| title_full | Housing tenure, energy consumption and the split-incentive issue in Australia |
| title_fullStr | Housing tenure, energy consumption and the split-incentive issue in Australia |
| title_full_unstemmed | Housing tenure, energy consumption and the split-incentive issue in Australia |
| title_short | Housing tenure, energy consumption and the split-incentive issue in Australia |
| title_sort | housing tenure, energy consumption and the split-incentive issue in australia |
| topic | principal-agent problem energy consumption Housing tenure split incentives |
| url | http://hdl.handle.net/20.500.11937/36317 |