Energy efficiency, information, and the acceptability of rent increases: A survey experiment with tenants


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Date

2021-03

Publication Type

Journal Article

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yes

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Abstract

This paper studies the role of imperfect information and attentional biases in the context of energy efficiency investments in rented properties and associated split incentives. We design a multiple price list experiment representing owners' decision to replace the central heating appliance, and employ both within-subject information disclosure and between-subject variation in information provision to quantify how tenants trade off energy efficiency and rent increases. Results show that informing tenants of a CHF 1 decrease in energy bills leads to CHF 1.12 in acceptable rent increase on average. Quantile regressions further indicate that the average treatment effect of information reflects heterogeneous changes along the entire distribution of acceptable rent increases. By contrast, information on energy bills variability dampens acceptable rent increase, and information about CO2 tax payments has no incremental impact on choices. Our results highlight the importance of credible ex-ante estimates of financial savings associated with energy efficiency investments. © 2020 Elsevier

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Publication status

published

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Volume

95

Pages / Article No.

105007

Publisher

Elsevier

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Edition / version

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Subject

Split incentives; Informational interventions; Energy efficiency; Rented properties; Survey experiments; Multiple price lists

Organisational unit

03877 - Bommier, Antoine / Bommier, Antoine check_circle

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