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Factors Affecting Renters' Electricity Use: More Than Split Incentives

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  • Rohan Best, Paul J. Burke, Shuhei Nishitateno

Abstract

This paper uses data from the 2015 Residential Energy Consumption Survey to explore the extent to which renters' electricity use in the United States exceeds that of otherwise similar non-renters. Renting households are found to use approximately 9% more electricity than non-renters when controlling for location, socioeconomic, and many appliance-quantity controls. There are multiple factors that explain this extra electricity use, including inferior energy efficiency of appliances, behavioral factors, differences in bill payment responsibilities, and additional reliance by renters on electric space and water heaters. The paper finds that none of these factors are dominant. The phenomenon of renters' (conditionally) higher electricity use is thus best understood as one that emerges from multiple sources.

Suggested Citation

  • Rohan Best, Paul J. Burke, Shuhei Nishitateno, 2021. "Factors Affecting Renters' Electricity Use: More Than Split Incentives," The Energy Journal, International Association for Energy Economics, vol. 0(Number 5).
    • Handle: RePEc:aen:journl:ej42-5-best
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    Citations

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    Cited by:

    1. Best, Rohan & Burke, Paul J., 2022. "Effects of renting on household energy expenditure: Evidence from Australia," Energy Policy, Elsevier, vol. 166(C).
    2. Mara Hammerle & Paul J. Burke, 2022. "Solar PV and energy poverty in Australia's residential sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(4), pages 822-841, October.
    3. Covington, Hannah & Woo-Shem, Brian & Wang, Chenli & Roth, Thomas & Nguyen, Cuong & Liu, Yuhong & Fang, Yi & Lee, Hohyun, 2024. "Method for evaluating fairness of electricity tariffs with regard to income level of residential buildings," Applied Energy, Elsevier, vol. 353(PB).
    4. Huang, Luling & Nock, Destenie & Cong, Shuchen & Qiu, Yueming (Lucy), 2023. "Inequalities across cooling and heating in households: Energy equity gaps," Energy Policy, Elsevier, vol. 182(C).
    5. Hector H. Sandoval & Pedro I. Hancevic, 2023. "Split Incentives in Emerging Countries," Working Papers 242, Red Nacional de Investigadores en Economía (RedNIE).
    6. Chaudhuri, Kausik & Huaccha, Gissell, 2023. "Who bears the energy cost? Local income deprivation and the household energy efficiency gap," Energy Economics, Elsevier, vol. 127(PA).

    More about this item

    JEL classification:

    • F0 - International Economics - - General

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