Mind the Gap: Quantifying Principal-Agent Problems in Energy Efficiency

Mind the Gap is an unprecedented attempt to quantify the size of one of the most pervasive barriers to energy efficiency principal-agent problems, or in common parlance, variations on the landlord-tenant problem. In doing so, the book provides energy analysts and economists with unique insights into the amount of energy affected by principal-agent problems. Using an innovative methodology applied to eight case studies (covering commercial and residential sectors, and end-use appliances) from five different IEA countries, the analysis identifies over 3 800 PJ/year of affected energy use that is, around 85% of the annual energy use of a country the size of Spain. The book builds on these findings to suggest a range of possible policy solutions that can reduce the impact of principal-agent problems and help policy makers mind the energy efficiency gap.Table of Content : Foreword Acknowledgements Executive Summary Introduction THEORY 1.Market Barriers to Energy Efficiency Improvements: Locating Principal Agent Problems within the Broader Context 2. Agency theory and Principal Agent Problems 3. Methodology COMMERCIAL SECTOR: CASE STUDIES 4. Principal Agent Problems in the Commercial Offices Sector 5. Energy Use Affected by Principal Agent Problems in Japanese Commercial Office Space 6. Principal Agent Problems in Commercial Offices in the Netherlands 7. Principal Agent Problems in Commercial Office Space Leasing in Norway RESIDENTIAL SECTOR: CASE STUDIES 8. Principal Agent Problems in the Residential Sector 9. Refrigerator, Water Heater, Space Heating, and Residential Lighting Energy Use Affected by the Principal Agent Market Failure 10. Space Heating in Rented Houses in the Netherlands 11. Set-Top Boxes: Energy Use Affected by the Principal Agent Problem in the United States END-USE APPLIANCE CASES 12. Principal Agent Problems in End Use Appliances: Vending Machines 13. A Case Study on Principal Agent Problems for Japanese Vending Machines and Display Cabinets 14. Vending Machine Energy Use in Australia Affected by Principal Agent Problems CONCLUSIONS 15. Conclusions and Policy Implications 16. Annex and References