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

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OECD/IEA, Jan 1, 2007 - Technology & Engineering - 219 pages
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This publication 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 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.--Publisher's description.

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