Aaron Michels, ERG’s operations director, will be giving a talk for the USGBC next Tuesday night, July 12th on solving the Split Incentive problem.
You can register at this link: https://bit.ly/climateaction12
PROGRAM DETAILS
In rental properties, there is a common obstacle to investment in energy efficiency. If the owner invests in efficient HVAC equipment, the tenant receives the benefit of lower utility bills. This reduces the financial incentive for building owners to make these upgrades. Seen more broadly, the “split incentive” exists whenever the responsibility for a proposed improvement is held separately from its benefits.
Since rapid implementation of energy efficiency is critical to addressing the climate crisis, the split incentive is an obstacle that endangers our collective future. Luckily, there are numerous solutions to the problem.
Tuesday, July 12th, 2022, Aaron Michels will present concepts for re-framing thinking about the split incentive as well as practical tools, including: commercial and residential lease language; organizational changes; staff incentives, policy proposals in other cities; and marketing, cultural, and informational solutions.
LEARNING OBJECTIVES
- Understand the Split-Incentive problem from the perspective of owners and tenants, how it intersects with racial equity, how it delays critical climate action, and how it can disrupt energy efficiency implementation inside organizations.
- Analyze the pros and cons of proposed solutions in commercial and residential leases, in ownership and organizational structures, and in employee incentives.
- Explore policies that have been used in other cities as well as cultural and marketing changes that address the split incentive.
- Investigate the similarities and differences between different building types as it relates to the split-incentive, including financial investment opportunities and compliance with local Building Energy Performance Standards.
Hope to see you there! The PowerPoint and/or recording will be posted here after the event.
