Energy use by apartment tenants when landlords pay for utilities
نویسندگان
چکیده
Energy costs are included in the rent for many US apartments, giving tenants little incentive to conserve. This apparent market failure has two explanations: the tenants value the utility-included rental contracts more than they value the extra energy they consume, or the landlords value the contracts more than the cost of that extra energy. We use the Residential Energy Consumption Survey and the American Housing Survey to estimate energy consumption and rent premiums for utility-included apartments. While rents are higher than for comparable metered apartments, the difference is smaller than the cost of the energy used, a finding that supports landlord-side explanations. © 2003 Elsevier B.V. All rights reserved. JEL classification: Q4; L85; L97
منابع مشابه
The Economics and Law of Rent Control
We consider a rent control regime where rent increases on, and eviction of, a sitting tenant are not allowed. However when an apartment becomes vacant the landlord is free to negotiate a new rent. We argue that this stylized system is a good (though polar) approximation for many rent control regimes existent today in several U.S. cities and the world over. Under such a regime, if inflation exis...
متن کامل“Pets Negotiable”: How Do the Perspectives of Landlords and Property Managers Compare with Those of Younger Tenants with Dogs?
Previous research has shown that housing insecurity contributes to animal relinquishment and that tenants with dogs face disadvantages in the rental market. Still, little is known about how dog owners navigate rental markets, nor how landlords and property managers perceive dogs and other pets. This case study reports on in-depth interviews with younger tenants with dogs and on open-ended surve...
متن کاملPercentage Rent in Retail Leasing: the Alignment of Landlord-tenant Interests
Only retail tenants pay their landlord a percentage of revenue in addition to the traditional fixed rent. The latter has often been shown to vary widely across stores-inverse to the sales externalities generated by the store. This paper demonstrates that revenue percentages vary widely as well, and positively with fixed rent (sales externalities). It is then argued that existing theoretical exp...
متن کاملConsequences of a price incentive on free riding and electric energy consumption.
This article shows that a simple monetary incentive can dramatically reduce electric energy consumption (EEC) in the residential sector and simultaneously achieve a more desirable allocation of EEC costs. The analyses are based on data from a policy experiment conducted in 2011 and 2012 by a private housing company in about 1,800 apartments. Roughly 800 of the tenants (treatment group) were sub...
متن کاملShould Indians Pay more for Renewable Energy Based Electricity? - The Need for Evidence Based Consumer Tariffs for Electricity in India
India seeks to achieve 175 Giga-Watt (GW) of Renewable power by 2022. As of December 2017, out of 333 GW of total installed capacity of electricity, close to 62GW come from renewable sources. Meeting the set targets calls for augmentation of renewable energy based capacities as expeditiously as possible. However, the sick financial health of the distribution companies/utilities, who act a...
متن کامل